Wool prices fall back at South Island wool sale - 26 November 2009

NZ Wool Services International Ltd reports prices at today’s South Island wool auction fell back slightly from their recent surge.

Since the previous sale on 19 November, the New Zealand dollar has weakened by over two per cent against a weighted index of the main wool trading currencies. However, the currency effect was negated as reduced pressure on urgent shipping requirements and rising seasonal wool flows combined to push prices down.

Of today’s offering, comprising approximately 8,500 bales, 84 per cent sold. 

According to New Zealand Wool Services International, the balance of today’s offering saw slightly lower returns than the previous sale. Two exceptions to this were the small offerings of merino fleece, which rose by between two and six per cent, and mid micron fleece, which increased by up to 2.5 per cent. 

Compared to last week’s South Island sale, fine crossbred fleece and shears eased by one to 2.5 per cent with coarse full carpet type fleece 2.5 to three per cent cheaper. 

Good style longer coarse shears were two per cent cheaper with average styles reducing four to six per cent. Shorter shears ranged from firm to 4.5 per cent easier. 

Combing oddments were 1.5 to 2.5 per cent cheaper with good style short oddments firm to two per cent easier. Short poorer style oddments ranged from three to five per cent cheaper.

Most of these price adjustments establish South Island wool values either slightly above or on par with last week’s North Island levels, bringing both Islands’ prices into line with each other.

Main interest at the sale was from buyers representing manufacturers in China, India and the Australasian carpet mills. Support also came from the Middle East, Europe and the United Kingdom.

Next week’s wool sale will be on 3 December, offering approximately 12,400 bales of North Island wool in Napier.

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.