Slight drop for wool prices

News release –

Slight drop for wool prices

NZ Wool Services International Ltd reports that prices for most types at today’s wool auctions slipped slightly.

The combined sale of North Island and South Island wool, at Napier and Christchurch respectively, offered a total of 15,000 bales, with 75 per cent of the offering sold.

Inactivity in China due to Chinese New Year festivities contributed to reduced competition, compounding the continuing world economic uncertainty that has weakened the wool market.

Since the previous sale, on 22 January, the wool weighted currency indicator had driven the New Zealand dollar down by around 1.5 per cent, though this provided little support to the market.

According to NZ Wool Services International, apart from a small range, most of the wool types on offer attracted lower prices. Small offerings of mid micron fleece, fine crossbred fleece, poor style shears and combing oddments were the exceptions, with prices of these types rising by up to 2.5 per cent

Hogget shears were one to two per cent cheaper. Carpet shears were also one to two per cent easier. Sound mill shears resisted this trend, improving by 1.5 per cent.

First lambs’ fleece finer than 29.5 microns dropped 1.5 to 2.5 per cent, with the coarser types down 2.5 to 4.5 per cent.

Prices for short oddments also reduced between two and 3.5 per cent.

Main competition at today’s auctions came from Australasian carpet mills, India and the Middle East, with support from Western Europe and China.

Next week’s auction, on 4 February, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 8,800 bales and 6,600 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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