6 Dec 2013

Wool prices continue to slide

8:05 am on 6 December 2013

A stronger dollar and continuing weak demand have put further pressure on wool prices at this week's combined North and South Island sales.

At last week's North Island auction, prices fell by up to 9%, in what exporters saw as a market correction after their sustained lift over the past few months.

On Thursday, prices for most wool types lost further ground, with North Island wools taking the biggest hit.

Cross-bred wools fell by up to about 4%, and more in the North Island in some cases.

However, a small offering of early season's lamb fleece gained 2%, and a small supply of merino fleece also fetched higher prices.

Eighty-nine percent of the 11,000 bales up for auction were sold but interest from most markets was muted.

The supply of wool remains an issue. Next week, only about 5000 bales will be offered at the North Island sale, 40% below what was expected.