Positive price trends at North Island wool sale

News release – Positive price trends at North Island wool sale

New Zealand Wool Services International Ltd reports prices at today’s auction of North Island wool in Napier showed some positive trends, resisting a stronger New Zealand dollar.

A limited offering of fine and coarse crossbred fleece was in greatest demand, gaining in value between two and six per cent.

Since the previous sale on 14 May the New Zealand dollar has strengthened by 1.1 per cent against a weighted indicator of the main wool trading currencies.

Of 10,349 bales on offer today, 73 per cent sold.

According to New Zealand Wool Services International, only the larger volumes of shears and shorter lamb’s wool on offer succumbed to the negative impact of the stronger currency, with these types easing between 1.5 and four per cent.

Crossbred oddments benefited from stronger interest, increasing by between two and four per cent.

The domestic Chinese hand knitting sector continues to dominate the market. Most other international customers, generally processing wool for carpets, continue to display only limited interest in the face of the international economic downturn.

The next wool auction, on 4 June, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 10,000 and 16,000 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_21.05.09.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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