South Island wool price movements reflect supply
News release – South Island wool price movements reflect levels of supply
NZ Wool Services International Ltd reports prices at today’s South Island wool auction saw wool supply factors driving price movements, with prices of different types rising or falling depending on the quantity of wool available.
Since the previous sale on 3 December, the New Zealand dollar has barely moved against a weighted index of the main wool trading currencies, meaning any fluctuation made minimal impact on prices at the sale.
Of today’s offering, comprising approximately 8,500 bales, 84 per cent sold.
According to New Zealand Wool Services International, compared to the last South Island auction on 26 November, mid micron fleece 27 to 29 micron was up one to three per cent, with 29.5 to 31 micron six to nine per cent stronger, reflecting lower volumes available as the end of the mid micron season approaches.
Fine crossbred fleece 31.5 to 35 micron ranged from 1.5 to six per cent stronger, with the 33 and 34 microns benefiting the most. Prices for longer fine crossbred shears were three to nine per cent firmer, with shorter types up between two and six per cent, continuing to be influenced by limited supply and ongoing Chinese interest requiring quick delivery.
As seasonal volumes of coarse carpet wool are set to increase, prices for these types generally eased. Full fleece ranged from one to three per cent cheaper, with the poorer styles affected the most.
While prices for longer shears ranged from firm to three per cent lower, shorter types strengthened between 1.5 and 6.5 per cent, with the bulk of the latter wool suitable for the premium carpet market.
Long oddments were firm to 3.5 per cent easier, with the shorter types remaining firm to four per cent dearer.
Widespread competition at the sale saw interest from buyers from China, Australasia, the Middle East and USA dominating, supported by India, the UK and Western Europe.
Next week’s wool auction, the final one of 2009, will be a combined sale of North and South Island wool, on 17 December in Napier and Christchurch, comprising approximately 13,700 bales in Napier and 7,300 bales in Christchurch.
New Zealand Wool Services International publishes a detailed weekly report on New Zealand wool auction trends. A summary of this can be viewed at http://www.nzwsi.co.nz. The full report is available by negotiation with the company.