Prices ease at wool sales - 18 December 2009

New Zealand Wool Services International Ltd reports that prices at today’s wool sales eased as a result of higher seasonal volumes and reduced pressure to process urgent pre-Christmas orders.

Compared to the previous sale on 10 December, the New Zealand dollar was unchanged against a weighted indicator of the main international wool trading currencies, making supply and demand the drivers of this week’s sales. 

In the combined auction of 22,500 bales of North and South Island wool in Napier and Christchurch, 84 per cent of the wool on offer was sold.

According to New Zealand Wool Services International, apart from some longer fine hogget wools destined for shipment before the Chinese New Year, which rose in price between 1.5 and four per cent, prices for most other categories eased. 

A nominal offering of finer mid micron fleece held firm, while 28 to 31 micron sold at six to nine per cent cheaper.

Finer short hogget shears were firm to three per cent cheaper, with the coarser end easing between two and six per cent. 

Good style coarse fleece dropped in price by between one and 2.5 per cent, with poorer styles 4.5 to six per cent softer as a result of larger volumes becoming seasonally available. 

Coarse shears ranged from firm to six per cent easier, with the shorter types most affected. 

A small offering of long oddments was firm to 4.5 per cent dearer, with good style short oddments firm to six per cent stronger. Poorer styles ranged from firm to down two per cent.

Competition at today’s sales was well spread, with China dominating the finer types. Buyers from Australasian carpet mills, India, the Middle East, Western Europe and the United Kingdom supported the carpet type wools. 

With today’s sales the final wool offering for 2009, the next sale will be in Napier on 7 January 2010, comprising approximately 17,000 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.