Prices rise across the board at North and South Island wool sales - 19 November 2009

New Zealand Wool Services International Ltd reports that prices at today’s wool sales rose across the board, despite a stronger New Zealand currency.

Measured against a weighted indicator of the main international wool trading currencies, the New Zealand dollar has risen by 2.2 per cent since the previous sale on 5 November, which would normally push local prices down. However this factor has been over-ridden by strong demand, resulting in some substantial price lifts in several sectors. 

In the combined auction of 22,000 bales of North and South Island wool in Napier and Christchurch, 93 per cent of the wool on offer was sold.

According to New Zealand Wool Services International, compared to the last time offered in Christchurch on 29 October, merino fleece rose in price by three to seven per cent, finer mid micron fleece remained firm with the coarser end one to two per cent up.

Compared to the last Napier sale on 5 November, North Island prices for fleece and shears were three to seven per cent dearer with oddments six to 11 per cent dearer.

In the South Island, since the previous Christchurch sale on 29 October 2009, comparable coarse wool types rose in price by nine to 13 per cent.

Buyers from Australasian carpet mills, China and the Middle East dominated widespread competition at the sales, supported by India, Western Europe and the United Kingdom.

Next week’s auction, on 26 November, will be of South Island wool, in Christchurch, offering approximately 5,400 bales.

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.