Strong demand and uncertain supply drives wool market

Strong demand and uncertain supply drives wool market to new levels

New Zealand Wool Services International Ltd reports substantial price rises at today’s wool sale.

A 99 per cent clearance was achieved for the 19,250 bales on offer at the combined auction of North and South Island wool, the positive result due to solid demand and uncertain projected supply in the coming weeks.

Since the previous offering on 13 January the New Zealand dollar is unchanged against a weighted indicator of the main international wool trading currencies.

According to New Zealand Wool Services International, mid micron fleece 29 micron and finer rose by between two and four per cent, with 29.5 to 30.5 microns up between six and ten per cent.

Fine crossbred fleece and shears in the 32 to 35 micron class firmed by between 6.5 and 13 per cent, coming under continued intense demand, particularly from the Chinese sector.

Coarse crossbred fleece and shears were six to ten per cent dearer.

First lambs’ wools types were strongly contested, prices increasing by ten to 12 per cent. All oddments rose between 9.5 and 13 per cent, although the better styles attracted the most interest.

Competition at today’s sales came from many quarters. China, India and Australasia took the principal roles, while the Middle East, Western Europe and the United Kingdom acted in support.

Next week’s sale is on 27 January, offering approximately 10,390 bales from the North Island and 8,150 bales of South 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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