13 Dec 2013

Wool prices continue to unravel

6:32 am on 13 December 2013

Wool prices are continuing to unravel from the gains they have made through most of the selling season.

At Thursday's small North Island sale, prices for most wool types fell again, in what New Zealand Wool Services International describes as a continuing market correction.

Strong cross-bred or carpet wools lost the most ground, selling for up to 9% less than last week, and poorer types shedding 10% to 17%.

Only two thirds of the 6200 bales up for auction were sold, well below the usual clearance rate, as growers resisted the sharp decline in prices for some wools.

Competition for the wool was also limited, with little buying activity in most markets.

It's a striking contrast to what was happening to demand and prices earlier in the season.

Export figures show the amount of wool shipped from July to October rose by more than 10% and returns by more than 22%.