11 Dec 2009

Wool prices driven mainly by limited supply

4:57 pm on 11 December 2009

Supply was the main factor driving prices at this week's South Island wool sale.

With little change in currency movements since last week, New Zealand Wool Services International says, prices rose or fell depending on how much of each type was available.

Compared with the previous Christchurch sale, mid-micron fleece prices rose by 1% to 9%, reflecting smaller quantities on offer as the season for that category nears its end.

Prices for fine crossbred wools also firmed by up to 9%, again influenced by limited supply and ongoing Chinese interest.

But prices for coarse carpet wool generally eased by up to 3%, as the seasonal supply starts to build up.

There was plenty of competition for the 8500 bales on offer, 84% of which were sold.

Next week's sale, the final one for the year, is a combined North and South Island auction.