Combined wool prices strengthen slightly

Combined North and South Island wool prices strengthen slightly

NZ Wool Services International Ltd reports that today’s wool auctions saw some improved prices, though failed to capture the full benefit of currency fluctuations.

The combined sale of North Island and South Island wool, at Napier and Christchurch respectively, offered a total of 22,700 bales.

Since the previous sale, on 8 January, the wool weighted currency indicator has driven the New Zealand dollar down 6.9 per cent. However, due to an ongoing drop in market demand and world economic downturn, the full currency advantage was not captured at the sales.

According to New Zealand Wool Services International, interest in the small offering of mid micron wools in Christchurch was strong, with prices strengthening between 3.5 and 6.5 per cent.

Crossbred hoggets and coarse carpet type wools were generally between 1.5 and 2.5 per cent stronger, with the better styled wool and second shears gaining two to three per cent on the back of interest from local carpet mills.  

First lambs wool continues to be of interest, with prices lifting between 25 and 4.5 per cent.

Oddments generally remained firm to slightly stronger.

Strongest support at the sales came from Australasian carpet mills, China and Western Europe, with support from India and the Middle East.

Next week’s auction, on 22 January, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 7,800 bales and 7,400 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-

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