16 Oct 2009

Wool trade seeing glimmerings of recovery

6:32 am on 16 October 2009

The wool trade is seeing what it hopes are signs of a recovery in carpet wool prices.

At Thursday's South Island sale, coarse carpet wools as well as finer crossbred wools made further gains - ranging from 2% to 7% - on the price lift seen in recent weeks.

Prices for merino and mid-micron types eased back a bit.

The exporter New Zealand Wool Services International says coarse wool prices have risen 28% in US dollar terms since the start of the season. But with the current exchange rate, the gains coming back to farmers have been nothing like that.

John Dawson of Wool Services International says however that in local currency terms crossbred prices are still improving, due to slightly better demand and restricted supply.

More than 87% of the 11,000 bales up for auction on Thursday were sold, one of the highest clearance rates so far this season.