Demand from China drives increase in wool prices - 30 April 2009

NZ Wool Services International Ltd reports that prices at today’s auction of South Island wool in Christchurch generally strengthened due to strong Chinese interest.

Since the previous sale on 23 April the weighted wool currency indicator strengthened by nearly one per cent. While this would normally have a negative impact on local wool prices, increased recent demand on world wool markets provided a boost. Categories suitable for manufacture in China particularly benefited, as well as wool types destined for the carpet sector.

Of 13,914 bales on offer today, 85 per cent sold.

According to New Zealand Wool Services International, a small selection of mid micron wools 28 micron and finer strengthened 10 to 20 per cent, with 29 to 31.5 micron lifting between two and four per cent.

Prices for fine crossbred fleece 32 to 35 micron were up between two to three per cent, with the fine crossbred shears gaining four to seven per cent.

Lambs’ fleece were strongly contested, gaining significantly as the sale progressed to increase between seven and 12 per cent.

Carpet type fleece was firm to three per cent dearer, with coarse shears strengthening between four and six per cent.

Oddments were 1.5 to three per cent stronger.

Most significant buyer interest at today’s sale was from China. Support from all other sectors was limited.

Next week’s New Zealand wool auction will be held in Napier on Thursday 7 May comprising approximately 9,400 bales of North 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.