Crossbred wool prices continue on rising trend at South Island wool sale - 15 October 2009

NZ Wool Services International Ltd reports that coarse wool prices have risen 28 per cent in US dollar terms since the start of the present season.

A favourable combination of the currency gaining 10 per cent and an underlying market lift of 18 per cent since 1 July has been positive for growers of coarse crossbred wools.

While finer crossbreds and coarse carpet wools continued to make further gains, prices of merino and mid micron types at today’s South Island wool auction in Christchurch eased slightly, mirroring the recent trend for comparative wools in Australia. 

Since the previous sale on 8 October, the New Zealand dollar has moved in various directions against the main wool trading currencies, but has remained effectively unchanged against a weighted index of these. 

Today’s offering of approximately 11,000 bales saw 87.5 per cent sold, one of the highest clearance rates so far this season. 

According to New Zealand Wool Services International, fine crossbred fleece and shears rose in price by between two and four per cent with the shorter types 32 and 33 microns strongly contested, rising between four and seven per cent. The 34 and 35 micron shears strengthened by between 1.5 and four per cent.

Prices for coarse crossbred fleece and shears of all descriptions were one to 3.5 per cent dearer.

Long oddments were firm to 2.5 per cent stronger, while the shorter types rose even more, between two and five per cent.

Meanwhile, among the finer types, the picture was less positive. Merino fleece 18 micron and finer were 1.5 to 2.5 per cent cheaper, 18.1 to 19.5 rose by up to two per cent and 19.6 to 27.5 microns were 2.5 to five per cent cheaper.

Mid Micron wools 23 to 30.5 microns eased between 1.5 and 2.5 per cent.

Buyers from Western Europe and China were active in the merino and mid micron wools, while the coarser types attracted greatest demand from Australasian Carpet Mills, India and the Middle East, with support from China.

Next week’s wool sale will be on 22 October offering approximately 8,800 bales of North Island wool in Napier.

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.