29 Apr 2011

Wool prices fall again

10:47 am on 29 April 2011

Wool exporters are describing a further slide in wool prices as a correction after prices rose too rapidly.

Prices for all wool types dropped at Thursday's combined North and South Island sale.

Crossbred fleece was 4% to 5% percent cheaper, coarse shears shed 3% to 6% and first lambs wool sold for 4% to 7% less.

The latest prices continue a decline this month from the peak in March

John Dawson of exporter Wool Services International says it's a sign that down-stream processors and consumers are resisting the rapid price rises of recent months.

He says prices went up too fast and a correction was needed, however prices are still significantly higher than they were at the start of the season.