Wool prices up despite stronger currency - 12 March 2009

NZ Wool Services International Ltd reports that prices at today’s wool auctions saw significant gains for most types, in spite of unhelpful currency factors. 

Since the previous sale on 5 March, the New Zealand dollar strengthened by 1.5 per cent against the weighted index of main wool trading currencies. While this would normally see a corresponding reduction in wool prices, market demand overrode that factor, with some sectors appreciating as much as 11 per cent.

Today’s combined sale of 22,264 bales in the North and South Island wool auctions in Napier and Christchurch saw 81 per cent of the offering sold. 

According to New Zealand Wool Services International, good colour fleece and shears of all microns on offer lifted between two and eight per cent, with the sounder fleece wools the most strongly contested.

Poor style fleece and shears, which have attracted very little attention recently, dramatically reversed this trend, with values strengthening between three and 11 per cent. 

The only sector not to improve was lambs’ fleece two to four inches and longer. This offering softened one to 2.5 per cent, with the stronger microns dropping furthest.

Short lambs’ fleece attracted more attention, gaining in value by 1.5 to 2.5 per cent.

Oddments of all descriptions were also strongly contested, with prices rising between three and seven per cent. 

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

With no auctions scheduled for next week, the next New Zealand wool sales will be on 26 March: a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 11,500 and 12,000 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.