Recent price lifts sustained at North Island wool sale - 5 November 2009

New Zealand Wool Services International Ltd reports today’s North Island wool sale in Napier continued the price increases seen over recent weeks.

Since the latest South Island sale on 29 October, the New Zealand dollar’s value against a weighted indicator of the main international wool trading currencies has hardly altered, suggesting this week’s price lift is due to supply and demand factors.

Of 7,500 bales on offer today, 90 per cent sold.

According to New Zealand Wool Services International, compared to the previous North Island wool sale on 22 October, longer fine crossbred shears rose in price by four to eight per cent, while the shorter types remained fully firm.

Coarse carpet fleece types were five to seven per cent dearer, while the longer coarse shears strengthened by four to 7.5 per cent. Prices for two to four inch shears increased by two to 3.5 per cent, with two to three inch wools appreciating by nine per cent. 

Combing oddments were two per cent dearer and the short types gained between five and nine per cent.

Compared to 29 October’s Christchurch sale, levels are generally two to four per cent higher, with the largest gains in the longer shears and fleece categories.

Strong competition was evident at the sale, led by buyers from Australasian carpet mills and supported by those representing the Middle East, India and China.

The next wool auction will be a combined sale of North and South Island wool, on 19 November in Napier and Christchurch, offering a total of 24,000 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.