Demand exceeds supply to push wool prices higher

Demand exceeds supply to push wool prices higher

New Zealand Wool Services International Ltd reports that today’s wool sale in Christchurch again saw solid price gains in all categories.

Since the previous auction on 27 March, the New Zealand dollar has slipped by between one and two per cent against the main trading currencies.

This, coupled with a limited offering available, saw the market respond accordingly.

A nominal offering of halfbred wools strengthened between three and six per cent.

Fine crossbred and hogget wools appreciated between 1.5 and five per cent, with the 3/5 inch wools benefiting the most, propelled by strong recent interest from Chinese buyers.

Good style crossbred full fleece strengthened two to three per cent, with the poorer styles remaining very firm.

According to New Zealand Wool Services International, the fiercest competition centred on first lambs’ wool, which rose 2.5 to six per cent. Coarse second shears attracted similarly keen buyer interest, with prices increasing between two and five per cent.

All oddments types were firm to 2.5 per cent dearer.

Next week’s wool auction will be of North Island wool only, held on Thursday 10 April, comprising 10,000 bales in Napier.

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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