Increased volumes influence prices at wool sale

News release – High dollar and increased volumes influence prices at North Island wool sale

New Zealand Wool Services International Ltd reports that prices at today’s auction of North Island wool in Napier, the first wool sale for 2010, saw most types soften in local price terms.

Increased seasonal wool volumes and a resurgent New Zealand dollar were the main factors influencing prices.

Since the most recent wool sale, on 17 December, the New Zealand dollar has appreciated in value against a weighted indicator of the main international wool trading currencies by 2.57 per cent. For international customers the currency effect resulted in generally firm to dearer prices at today’s sale.

Of 19,000 bales on offer today, 90 per cent sold.

According to New Zealand Wool Services International, prices for fine crossbred fleece and shears generally dropped by two per cent, with good style second shears 1.5 per cent easier and poor styles three to four per cent softer.

Early season short lambs wool of 27.5 micron and finer remained firm, with coarser types down as much as two per cent.

Oddments were firm to 2.5 per cent easier.

Competition at today’s auction was well spread dominated in the finer wool types by buyers from China. Australasian carpet mills, India and the Middle East were to the fore on the coarser wools, with support from Western Europe and the United Kingdom.

Next week’s auction, on 14 January, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 11,300 bales and 13,300 bales respectively.

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.

tables covering indicators and prices for key wool types from this week's sale (xls)

The full and detailed version of the New Zealand Wool Services International New Zealand Wool Report is taken by various national and international corporations, exchanges and agencies, including NZX, Reuters, the UK Wool Report, Meat and Wool New Zealand, Australian Wool Exchange and various others including bank economists and analysts.

ENDS

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