Wool prices benefit from supply disruption

Wool prices benefit from supply disruption

New Zealand Wool Services International Ltd reports that prices improved for most types at today’s wool sales, despite a stronger New Zealand dollar.

In the combined auction of North and South Island wool in Napier and Christchurch, 72 per cent of the 8700 bales on offer sold.

Against the weighted indicator of the main international wool trading currencies, the New Zealand dollar was 1.87 per cent higher than the previous sale on 3 June. While this would normally have pushed local prices down, supply reduction following recent winter weather buoyed prices and overcame the negative currency influence.

According to New Zealand Wool Services International, a nominal offering of mid micron fleece, 26 to 31.5 micron, was one to two per cent dearer, with the fine crossbreds rising by up to two per cent.

Second shears strengthened in price between one and three per cent, with first lambs’ wool also increasing within a similar range.

Combing oddments ranged from one to five per cent stronger, with the poorer styles appreciating the most.

Short oddments were firm to three per cent dearer.

Competition at today’s sales was well spread with buyers from China, India and the Australasian carpet mills to the fore, supported by the Middle East, Western Europe and the United Kingdom.

Next week’s auction, on 24 June, will be in Napier only, consisting of 5700 bales of North Island wool.

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.

ENDS

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