Fine wool prices slump

News release - Fine wool prices slump

New Zealand Wool Services International Ltd reports prices at today’s auction of approximately 11,300 bales of South Island wool, in Christchurch, saw some drastic price drops for merino and mid micron fleece, reflecting similar market reductions for comparable types in the Australian market over recent weeks.

Crossbred types fared better with some categories increasing in value, assisted by a weaker New Zealand dollar compared to the main trading currencies.

Passing in of merino fleece was extreme, with 80 per cent either passed or withdrawn. Mainly only the poorer fleece lines and oddments were sold with prices being offered for the good style fleece being 15 to 20 per cent lower than the last offering on 16 October.

Mid micron fleece was also influenced by the ongoing international economic crisis with 29.5 micron and finer dropping seven to 10 per cent and 30 to 31 micron 2.5 to 3.5 per cent cheaper. Approximately 45 per cent of all mid micron wool was passed in.

Fine crossbred fleece and early shorn types were two to three per cent cheaper, with the shorter types generally firm to one per cent dearer.

According to New Zealand Wool Services International good colour fleece, early shorn and longer shears captured most of the currency advantage to strengthen between one and 2.5 per cent. The poorer styles and short shears softened 1 to 2.5 per cent. Crossbred oddments were two to four per cent cheaper.

With 23 per cent passed in for the coarse wool sector, the overall passings reduced to 34 per cent.

Competition for the fine wool sector was limited, with restricted interest from Western Europe. Coarse wool types were supported mainly by India, China, Australasia and the Middle East, with little activity from Western Europe.

Next week’s sale of South Island wool is on 6 November, in Napier, offering a reduced quantity of 6,600 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.

Attached table

Please find attached tables covering indicators and prices for key wool types from this week's sale.

[wool301008.xls]

-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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