27 Jan 2011

Wool prices expected to keep rising

6:43 am on 27 January 2011

Wool brokers expect New Zealand wool will continue to fetch high prices for at least another three to five years.

Strong wool fleeces reached $5.60 per kg at auction in Napier last week, after being at record lows just over a year ago.

The Wool Brokers Association says wool prices have not been that strong since the 1990s and are adding new found confidence to the sheep industry.

President Philippa Wright says prices could go even higher at the sales of Thursday.

She says the rise is sustainable because sheep numbers are now half what they were in Australia and New Zealand.

Stocks held by buyers from previous years are now all used.