27 Feb 2009

Wool prices mixed, lower demand

7:56 am on 27 February 2009

Prices for better-styled wools strengthened at Thursday's North Island and South Island sales while poorer quality types slipped back.

New Zealand Wool Services International says since last week's sale there has been limited currency movement between the New Zealand dollar and the main wool trading currencies.

It says any weakening in prices could be attributed to lacklustre demand, as only 65% of the 16,000 bales on offer sold.

Prices for poorer style coarse fleece and shears fell by up to 7%.

Reduced interest from Chinese buyers undermined prices for first lambs' wool by up to 4%.

Small volumes of good to average, well-prepared fine and coarse crossbred fleece wool was in strong demand, with prices rising by up to 5%.

The main interest was from Australasian Mills, India, China and the Middle East, with limited support from Western Europe.

Next week's auction will be a combined sale of North Island and South Island wool with a similar amount on offer.