North Island wool prices stable

News release – North Island wool prices stable

New Zealand Wool Services International Ltd reports that prices at today’s sale of North Island wool in Napier were comparatively solid.

Since the previous sale on 23 July the New Zealand dollar has not moved appreciably against a weighted indicator of the main wool trading currencies.

Of 11,600 bales on offer today, 65 per cent sold.

According to New Zealand Wool Services International, since the previous North Island sale on 9 July, fine crossbred shears were three to five per cent dearer, with good colour coarse fleece prices firm, average styles three per cent dearer and poor styles up to seven per cent dearer.

Long coarse shears were 3.5 to six per cent dearer with 3/4 inch and shorter between firm and five per cent dearer.

Prices for a very nominal offering of lambs fleece eased between 1.5 and 2.5 per cent. Short coarse oddments were firm to 5.5 per cent dearer with good style types the most sought after.

Compared to the last South Island sale, on 23 July, 3/5 inch and longer wools were marginally easier.

Buyer interest came most strongly from local and Australasian carpet manufacturers, particularly for the shear types. There was limited support from India, UK, China and Western European markets.

Next week’s wool auction, on 6 August, will be of South Island wool, in Christchurch, offering approximately 12,900 bales.

In recent months, 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. For that reason, New Zealand Wool Services International has altered its method of reporting changes in wool prices. Sales will be compared to the previous percentage price movement at the time the same centre last sold, more effectively reflecting type to type market movements. Market and currency indicators, however, will still be compared to the last auction, regardless of where that was held.

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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