10 Jun 2013

Tight supplies keep NZ wool prices high

6:28 am on 10 June 2013

Renewed interest from European customers is helping to underpin New Zealand wool prices.

There was a modest lift in prices at last week's South Island sale, as a result of a weaker New Zealand dollar and buyers having to compete for a third less wool than had been expected.

Exporters believe supplies will remain tight for the next few months.

New Zealand Wool Services International said having European buyers competing with the Asian market again will strengthen demand for the limited supply on offer.

John Dawson said there has been more demand out of Europe in the last few months than there has been for some time.

Mr Dawson said he has just visited Europe and while buyers there are very hesitant to be positive in light of the eurozone crisis, there is a feeling that things have improved a little.

He said it is good to see more of a balanced global market, rather than being totally reliant on Asia.