Signals mixed at North Island wool sale

News release – Signals mixed at North Island wool sale

New Zealand Wool Services International Ltd reports that price signals were mixed at the first auction of the 2009/10 season.

In the sale of North Island wool in Napier, most types eased compared to the last South Island sale, though some sectors were stronger than when they were offered at the last North Island sale.

Since the previous sale on 25 June the New Zealand dollar has weakened slightly against a weighted indicator of the main wool trading currencies. However, with markets taking up to 30 per cent less wool than before the economic crisis, this effect did not create a corresponding rise in prices.

Of 13,600 bales on offer today, 62 per cent sold.

According to New Zealand Wool Services International, alternating sales between the North and South Islands, where different character wools are offered, has tended to exaggerate market movements due to the difficulty in comparing the types for sale.

At today’s sale, when compared to the last South Island sale, finer crossbred fleece and shears were four per cent cheaper, coarse good colour fleece one to two per cent cheaper, with poorer styles reversing the trend, strengthening by up to four per cent. A large offering of coarse shears softened by up to four per cent.

A small selection of combing oddments strengthened between three and seven per cent, with shorter types firm to two per cent down, although compared to prices achieved for like types at the previous North Island sale, which was on 18 June, all oddments were five to ten per cent dearer and short shears rose by up to four per cent.

Buyer interest was limited, coming mainly from local and Australasian carpet manufacturers. Support was also evident, though restricted, from India, the Middle East and the UK.

The next wool auction, on 23 July, will be a sale of South Island wool, in Christchurch, offering approximately 15,000 bales.

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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