Prices hold ground at latest wool sales

Prices hold ground at latest wool sales

New Zealand Wool Services International Ltd reports that, after strong gains in recent months, prices at this week’s wool offering stabilised, at least in local terms.

An 88 per cent clearance was achieved for the 8,000 bales on offer at today’s combined auction of North and South Island wool.

According to New Zealand Wool Services International general manager John Dawson, a sharp rise in the New Zealand dollar inhibited local prices, which when translated to overseas currencies showed considerable increases.

“Since the previous offering on 28 October, the New Zealand dollar has risen by 4.6 per cent against a weighted indicator of the main international wool trading currencies. On that basis, local prices did well to hold their ground.

“Merino and mid micron wools were between 1.5 and 5.5 per cent stronger.

“Fine crossbred fleece and shears were generally firm with the shorter types up to 1.5 per cent easier.

“Coarse fleece ranged from firm to two per cent softer, with the poorer styles most affected.

“Coarse shears remained firm. Oddments were also generally firm,” he said.

According to John Dawson, competition at today’s sales was evenly spread.

“China, Australasia and India led demand, while buyers from Asia, Western Europe and the United Kingdom took supporting roles,” he said.

Next week’s sale will be on 11 November, offering approximately 5400 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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