5 Feb 2009

Mixed prices received in wool sale

1:33 pm on 5 February 2009

There were mixed results at the combined North and South Island wool sale on Thursday.

Demand and favourable currencies pushed up prices for some types of wool, while others fell.

More than 16,000 bales were offered in the combined sales at Napier and Christchurch, with nearly a quarter of that passed-in.

NZ Wool Services International reports that since last week's sale the wool weighted currency indicator drove the New Zealand dollar down by 2.3% against the main wool trading currencies.

Wool types with small volumes available generally saw price gains, including mid micron fleece, which was 1% stronger.

Fine crossbred fleece and shears and good style coarse fleece were up to 3.5% stronger.

Prices for finer first lambs wool increased by up to 5% and oddments were strongly contested, rising by up to 6%.

The bulk of the offering was made up of average to poor style coarse fleece, and while there was strong interest in the South Island, it was poorly supported in the North. The price fell by around 1% overall.

The main competition was from Australasian carpet mills, India, the Middle East and China, supported by Western Europe.

There will be another combined North and South Island wool sale with a similar amount offered next week.