Wool Prices Rising Again

Wool Prices Rising Again

New Zealand Wool Services International Ltd reports that demand at today’s wool sale was strong, driving prices up by between three and nine per cent.

Of the 20,000 bales on offer at the combined auction of North and South Island wool, 97.7 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, although a slightly weaker New Zealand dollar accounted for some of the rise, a diminishing supply coming under continued heavy demand was the main market driver.

“Since the previous offering on 17 February the New Zealand dollar dropped 1.52 per cent against a weighted indicator of the main international wool trading currencies.

“A nominal offering of mid micron fleece lifted in price between three and eight per cent.

“Fine crossbred fleece and shears were strongly contested, rising by between four and nine per cent. Coarse crossbred fleece and shears gained between three and eight per cent.

“Having recently lost ground, lambs’ fleece recovered today, strengthening in price by six to nine per cent. Oddments also lifted, up by between two and 16 per cent, with prices for the South Island selection increasing more than for the North Island wool,” he said.

Buyers from China, India and Australasia dominated today’s keen and well spread competition, supported by the United Kingdon, Western Europe and Asia.

Next week’s sales, on 10 March, will offer approximately 12,100 bales from the North Island and 12,850 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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