Prices lift for most types at South Island wool sale - 23 July 2009

NZ Wool Services International Ltd reports that prices for most types increased at today’s South Island wool auction. 

Since the previous sale on 9 July the New Zealand dollar has risen against the main wool trading currencies by an average of four per cent, though a consequential negative impact on wool prices did not eventuate for the bulk of the offering in Christchurch, reflecting recent increased demand for all textile fibres.

Around 78 per cent of the approximately 16,800 bales on offer today sold.

According to New Zealand Wool Services International, mid micron fleece wools 29.5 micron and finer rose between six and nine per cent, with 30 micron up by two per cent since previously offered on 25 June.  The 30 to 31.5 micron and the finer crossbred fleece 32 to 34 micron received less support, easing between four and six per cent.

Compared to prices received at the previous sale in the North Island on 9 July, the balance of the offering saw fine crossbred shears 32 to 35 micron also attract limited interest, falling between four and six per cent, with the only other sector to soften being first lambs, which dropped between two and four per cent.

Demand for coarse fleece and shears was strong, pushing prices for these types up by between two and five per cent. Limited availability of the poorer styles saw these attract particular interest.

Combing length oddments rose in price by between three and seven per cent, with the shorter types two to five per cent dearer.

Competition was well spread from buyers representing different international markets. Strongest support was from India, the Middle East, and Australasian carpet mills, with buyers from China, Western Europe and the United Kingdom less prominent but still active.

The next wool auction will be held in Napier on Thursday 30 July, comprising approximately 11,900 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.