Wool price gains aided by limited volumes

News release – Wool price gains aided by limited volumes

New Zealand Wool Services International Ltd reports that the market was firmer overall at today’s wool sale, abetted by the relatively limited volume on sale.

In a combined offering of approximately 6,300 bales of North and South Island wool, 85 per cent sold.

Since the last wool sale on 9 June the New Zealand dollar has eased by 1.26 per cent against a weighted indicator of the main wool trading currencies.

New Zealand Wool Services International general manager John Dawson said that a combination of factors worked to bolster today’s sale.

“Restricted seasonal volumes, the New Zealand dollar easing slightly against the United States dollar, and a steady flow of customer enquiry means the price of New Zealand wool has kept pace with the firming trend experienced in other international wool producing markets.

“Mid micron fleece finer than 29 micron was firm to two per cent up at today’s sale, while a nominal offering of the coarser types, between 29.5 and 31.5 micron, fell in price between one and two per cent. Fine crossbred fleece ranged from one to four per cent stronger with the fine crossbred shears firm to 1.5 per cent dearer.

“Coarse carpet type fleeces ranged from firm to two per cent dearer.

“Long coarse shears, mainly available in the South Island, and two to four inch shears rose by up to two per cent, while the shorter types eased slightly.

“While long lambs’ wool types gained in price by two per cent, the coarse shorter lambs’ wools were firm to two per cent down.

“For the nominal offering of long oddments, the good styles eased in price by up to three per cent while prices for the poorer styles rose by up to three per cent.

“Shorter oddments were firm to one per cent stronger,” he said.

According to John Dawson, competition at today’s auction was good. Buyers from Australasia, China, India and the United Kingdom were most active, while those from Western Europe and the Middle East offered solid support.

Next week’s sale on 23 June is scheduled to offer approximately 10,200 bales from the North Island and 4,800 bales of South 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.

ENDS

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