Steadier signs for wool in first sales of 2009

Steadier signs for wool in first sales of 2009

NZ Wool Services International Ltd reports that prices at today’s wool auctions, the first sales for 2009, showed signs of strength in some areas

The combined sale of North Island and South Island wool, at Napier and Christchurch respectively, offered a total of 22,200 bales.

The wool weighted currency indicator strengthened by one per cent since the previous sale, on 18 December, and wool prices generally softened, though competition grew stronger as the auctions progressed.

According to New Zealand Wool Services International, overall price easing can be attributed to the South Island price levels coming into line with the North Island, where larger volumes were on offer.

Strongest support was registered for mid micron wools, which increased by four to seven per cent, with the 27 and 28 microns holding their ground. Coarser types softened up to three per cent. First lambs wools were also strongly supported, with 27.5 micron and finer types increasing between seven and nine per cent and 28 to 29 micron gaining by 1.5 to two per cent.

Coarser types generally remained steady.

Hoggets and coarser carpet wool types, which made up the bulk of the offering, started the sale on a lower basis. As the auctions progressed however, these types gained more support, generally ending the day between two and four per cent easier than when previously offered.

Good style coarse fleece resisted this trend, ending the day at only 1.5 per cent softer.

Main competition was from Western Europe, Australasian carpet mills, China and India, with limited support from the Middle East and Asia.

Next week’s auction, on 15 January, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 12,500 bales and 5,000 bales respectively.

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

Attached table

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

Sale_08.01.09_.xls

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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