1 Aug 2008

Wool prices strengthen

6:08 am on 1 August 2008

Wool prices strengthened between 2% - 5% for most types at wool sales in Napier and Christchurch on Thursday.

The New Zealand dollar has fallen by 5% against the US dollar, since the last sale a fortnight ago, which has helped to lift prices.

New Zealand Wool Services International says mid micron wool prices increased by 5% - 7% as a result of robust competition from European processors.

Finer crossbred fleece and hogget wools rose between 3% - 4%, while some coarser cross-bred fleece, second shears, lambs fleece and oddments all appreciated between 2% - 5%.

Bad weather conditions continue to disrupt shearing in many parts of the country. Combined with the effects of lower stock numbers, this has reduced anticipated wool supplies.

As a result, next week's scheduled sale is cancelled and the next sale, of South Island wool, will be held in a fortnight in Christchurch.