Increased demand for better style wool at auctions - 5 March 2009

NZ Wool Services International Ltd reports that prices at today’s wool auctions reflected increased demand for good style wools, while poor colour and faulted types attracted less attention.

For the second week in succession, currency played a minor role in the market, with the New Zealand dollar dipping only very slightly against the main wool trading currencies since the previous sale on 26 February.

Today’s combined sale of 16,300 bales in the North and South Island wool auctions in Napier and Christchurch saw 79 per cent of the offering sold. 

According to New Zealand Wool Services International, the limited availability of better style wools drove prices up, with higher volumes of poorer wools proving more difficult to place.

Good style fine crossbreed fleece and shears increased in price between 1.5 and nine per cent.

While good style crossbreed fleece and shears went up between 2.5 and seven per cent, average and poor styles were 2.5 to five per cent softer, especially poorly prepared lines and wools containing vegetable matter.

Longer lambs’ fleece generally improved three to six per cent, with shorter types struggling to retain their established prices.

A limited offering of long oddments also attracted interest, lifting four to eight per cent, with shorter types generally remaining firm.

Main buyer activity at today’s sales was from Australasian carpet mills, India and China, with limited support from Western Europe and the Middle East.

Next week’s auction, on 12 March, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 8,700 and 5,100 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.