Coarse wools strengthen further

Coarse wools strengthen further

New Zealand Wool Services International Ltd reports that prices for coarse wool continued to increase at this week’s wool sale.

In the combined auction of North and South Island wool, 88.3 per cent of the 8300 bales on offer sold.

Since the previous offering on 9 September the New Zealand dollar has slightly increased in value against a weighted indicator of the main international wool trading currencies, rising by 0.29 per cent. This had limited impact on the present supply driven market.

According to New Zealand Wool Services International, while coarse wool prices increased, the season’s first significant offering of mid micron wools eased slightly, falling by 1.5 to 3.5 per cent, in line with comparative types elsewhere, and most of the categories that were passed in today were mid micron wools.

A small offering of merino wools also dropped in price, fetching between two and seven per cent less than the last merino wool that came to auction, on 2 September.

Meanwhile, compared to 9 September, prices for fine crossbred fleece and shears were generally firm with the odd type easing by up to 2.5 per cent.

Coarse wools, which are currently in limited supply, were strongly contested, with full fleece rising between 1.5 and 4.5 per cent and the second shears up by one to 3.5 per cent.

All oddments also gained, rising in price between 1.5 and 3.5 per cent.

Competition at today’s sale was well spread, with China and Western Europe active in the fine wool sector, while Australasia and Western Europe dominated the coarser categories, supported by buyers from China, the United Kingdom and India..

Next week’s auction, the sale rostered for 23 September, has been cancelled due to lack of supply. The next sale will therefore be on 30 September, comprising approximately 7500 bales of North Island wool and 9000 bales from the South Island.

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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