Coarse wool market steadies at South Island sale -11 December 2008

New Zealand Wool Services International Ltd reports prices at today’s auction of approximately 7,500 bales of South Island wool, in Christchurch, saw the bulk of the offering firm.

In overseas currency terms, most of the wool offered, the bulk of which were carpet types, saw prices increase compared to recent sales.

Against a weighted currency indicator, taking into account the percentage of wool exported in the main trading currencies of United States dollars, Australian dollars, sterling and Euros, the New Zealand dollar has appreciated by 1.4 per cent since the previous sale on, which was on 4 December.

According to New Zealand Wool Services International, a small selection of merino fleece, which incurred a very high pass-in rate, was nominally three to five per cent cheaper for 17.5 micron and finer, with the 18 microns and coarse wool types seven to ten per cent cheaper, compared to the last time offered, which was on 20 November.

Mid micron wools fared better. Fleeces in the 25 to 29 micron range rose in price by one per cent and 29.5 to 31.5 micron dropped up to 1.5 per cent compared to the 27 November South Island sale when they were last offered.

Compared to last week’s North Island auction, crossbred hogget fleece and fine shears dropped in price by one to two per cent.  

Good colour crossbred fleece early shorn and longer shears were one to two per cent dearer, with the poorer styles and shorter types firm to one per cent cheaper.

Where comparable with their most recent previous offering, a very small selection of lamb’s wool and oddment types were generally unchanged to slightly easier.

Main competition came from Australasian carpet mills, Western Europe, China and India, with support from the Middle East and Asia.

Next week’s combined sale of North and South Island wool is on 18 December, in Napier and Christchurch, offering approximately 18,300 bales and 5,500 bales respectively.

New Zealand Wool Services International publishes a detailed weekly report on New Zealand wool auction trends. A summary of this can be viewed at http://www.nzwsi.co.nz. The full report is available by negotiation with the company.