Wool prices ease slightly

News release – Wool prices ease slightly

New Zealand Wool Services International Ltd reports prices at today’s wool sale softened slightly, although the clearance rate was high.

Of the 12,700 bales on offer at the combined auction of North and South Island wool, 98 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, the market has settled back slightly from its recent record levels.

“Today we saw an easier tone, mostly as the market reacted to the unexpectedly large lift a fortnight ago. Activity from China was also quieter this week as that country takes its spring festival break. Exporters still have a good range of forward orders to complete, which accounted for the high clearance rate.

“Since the previous offering on 27 January the New Zealand dollar strengthened 0.58 per cent against a weighted indicator of the main international wool trading currencies, which had little impact on the market.

“A small offering of mid micron wools remained firm, with fine crossbred fleece and shears two per cent cheaper. Coarse crossbred fleece was generally firm to two per cent softer, with the longer second shears also firm to two per cent cheaper. The shorter shears ranged from one to four per cent easier, with the North Island selection affected the most.

“First lambs’ wool resisted the trend, rising by up to two per cent.

“Oddments eased the most, with good style oddments dipping in price by between two and four per cent and poor styles softening by four to five per cent,” he said.

Competition at today’s sales was widespread, dominated by India, Australasia and, despite its holiday China, while buyers from the United Kingdom, the Middle East and Western Europe took support roles.

Next week’s sale is on 10 February, offering approximately 12,600 bales from the North Island and 8200 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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