Demand drives some categories at South Island wool sale - 16 April 2009

NZ Wool Services International Ltd reports that today’s auction of South Island wool in Christchurch saw specific categories attract strong interest. 

With minimal currency fluctuation since the previous sale on 8 April, client demand for targeted types was the main motivator for price increases. Other types, however, were ignored.

Of 16,700 bales on offer, 61 per cent sold.

According to New Zealand Wool Services International, recent Chinese activity requiring quick shipment stimulated demand in the fine crossbred sector, where prices rose between two and four per cent. Lambs’ fleece benefited for the same reason, increasing between two and six per cent.

Coarse shears of all descriptions also attracted strong attention, lifting between one and three per cent. 

For coarse fleeces, poorer types lifted off a very low base, strengthening in price by four to six per cent. However, prices for remaining carpet type fleece eased between two and four per cent.

Oddment types are difficult to place at present, resulting in a softening in price for all oddments of between 3.5 and eight per cent.

Buyer interest was similarly restricted for coarse wools with faults or high seed content.

Most significant buyer interest at today’s sale was from China and India, supported by Australasian carpet mills, Western Europe and the UK.

Next week’s New Zealand wool auction will be held in Napier on Thursday 23 April comprising approximately 7,500 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.