4 Dec 2009

Prices drop slightly at the North Island wool sale

9:23 am on 4 December 2009

Wool prices at this week's North Island wool sale have dropped slightly, however, almost all of the 13,500 bales on offer sold.

New Zealand Wool Services International reports that since last week's South Island sale the dollar has fallen against a weighted currency indicator by less than 1%, and while this would normally be a positive currency effect, it did not have the expected impact on prices.

Prices for fine crossbred sector withstood the downward pressure, and compared with the previous North Island sale a fortnight ago, fine crossbred full fleece types rose by up to 2.5%.

Longer shears rose by up to 5% and a small offering of very short shears strengthened by up to 12%, due to urgent shipping requirements from the Chinese market.

Coarse carpet fleece types fell by up to 3%, while shears ranged from firm to 2% lower, pushed down by the imminent prospect of seasonal volumes of these types appearing on the market.

Competition was spread between Asian, Australasian and Middle Eastern buyers.

Next week's South Island wool sale will have almost 8,500 bales on offer.