Prices generally stronger at South Is. wool sale

News release – Prices generally stronger at South Island wool sale

NZ Wool Services International Ltd reports that prices at today’s South Island wool auction, the final sale of the 2008/09 selling roster, were generally stronger.

Since the previous sale on 18 June the New Zealand dollar has strengthened against most wool trading currencies, though this had little discernible negative impact on prices.

Of the 16,900 bales on offer today, 65 per cent sold.

According to New Zealand Wool Services International, compared to last week’s North Island sale, the greater selection of types on offer increased competition for the limited quantities available in some categories.

Mid micron fleece 27 micron and finer was firm to two per cent cheaper compared to the last time offered, which was on 4 June. Fine crossbred fleece 32 to 34 micron also eased between one and two per cent.

Compared to last week’s North Island sale on 18 June, 35 micron fleece was up to 6.5 per cent dearer. All fine crossbred early shorn and shears also rose in price, these types increasing by between three and four per cent

With the commencement of pre-lamb shearing, the larger volume of good colour crossbred fleece on offer lost ground, dropping in price between three and four per cent, though average styles recovered from last week’s lows to strengthen by up to eight per cent.

Poorer style fleece saw little change, easing by one per cent. Longer coarse early shorn and second shears rose one to two per cent, with a small volume of shorter types rebounding between six and ten per cent.

First lambs 29.5 micron and finer strengthened one to three per cent with coarser types gaining three to six per cent.

All oddments appreciated between three and six per cent.

Competition was widespread from buyers representing different international markets. Most significant interest for the finer types at today’s sale was from China and Western Europe, with Australasia, India and the Middle East to the fore in the coarse wool sector.

The first wool auction of the new season will be held in Napier on Thursday 9 July, comprising approximately 14,000 bales of North Island wool.

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.

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

ENDS

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