Wool Market Holds Ground At South Island Auction

Wool Market Holds Ground

New Zealand Wool Services International Ltd reports that prices at today's auction of South Island wool, in Christchurch, generally shrugged off the effect of the stronger NZ dollar, which had risen by 1.3 per cent against the United States dollar since the previous wool sale on 27 September.

A wide cross section of wool types was on offer in Christchurch, from the finest merino wools to coarse carpet type wools.

According to New Zealand Wool Services International, the merino offering ignored the currency trend, strengthening between two and four per cent, with the more stylish lines attracting significant margins.

Reaction in the mid-micron sector was mixed, with some specific micron points such as the 25, 27 and 29 microns, gaining by up to two per cent. However, the remainder generally eased at a level corresponding to the currency factor.

The hogget and coarse shears softened between one and two per cent, with the longer end being least affected.

Coarse full fleece types held their ground, with the better lines strongly contested.

Poorly prepared lines and coarse wools containing high vegetable matter content were discounted by between five and eight per cent.

Next week's North Island sale will be held in Napier on 11 October, comprising 8,700 bales.

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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