Over-supply pushes wool values down

News release - Over-supply pushes wool values down

New Zealand Wool Services International Ltd reports that the first sale of the 2008/09 wool season, held in Napier today, saw prices in most types ease, reversing the upward trend of recent months.

With the New Zealand dollar basically unchanged against the United States dollar since the previous wool sale on 26 June, sluggish recent demand has caused the market to soften. According to New Zealand Wool Services International, wool brokers disposing their stocks onto the auction system compounded this negative impact today.

The volume placed on the market this week was 26 per cent above the rostered amount, stressing an already fully stocked supply line.

New Zealand Wool Services International reports that fine and coarse crossbred full fleece eased between two and three per cent at the Napier sale, with the higher seasonal volumes of better colour wools being affected the most.

Second shear types softened between two to four per cent, with the shorter end bearing the brunt.

Prices on a very small offering of lambs’ wool fell between three and four per cent.

The best result of the day was for the oddment sectors, which generally remained firm.

The next auction will be of South Island wool only, held in Christchurch on Thursday 17 July. This sale will comprise 11,900 bales, in line with the rostered quantity.

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

Note to editor:
The full and detailed version of the New Zealand Wool Services International New Zealand Wool Report is taken by various national and international corporations, exchanges and agencies, including NZX, Reuters, the UK Wool Report, Meat and Wool New Zealand, Australian Wool Exchange and various others including bank economists and analysts.

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