Prices continued to rise at today's wool sales in response to increased demand, New Zealand Wool Services International reports.Compared to the previous sale last week, the New Zealand dollar has increased in value against a weighted indicator of the main
Prices continued to rise at today's wool sales in response to increased demand, New Zealand Wool Services International reports.
Compared to the previous sale last week, the New Zealand dollar has increased in value against a weighted indicator of the main international wool trading currencies by 0.68 per cent. While this would normally have pushed local prices down, strong competition over-rode the currency factor to drive prices for most types higher.
In the combined auction of 14,000 bales of North and South Island wool in Napier and Christchurch, 97 percent of the wool on offer sold.
NZ Wool Services International said a nominal offering of merino fleece in the South Island rose in price by 2 to 5 percent, with mid micron fleece up between 1 and 4 percent.
Continued strong demand from Chinese buyers kept the price of fine crossbred fleece and shears trending up: nationally they were 1.5 to 4 percent dearer than last week. Coarse crossbred fleece and shears ranged from 2.5 to 7 percent stronger, with greater buyer pressure on the better style wools.
Fine lambs' fleeces, in limited supply due to the present favourable growing conditions, were in particular demand, rising 10 to 14 percent, with the coarser types increasing by 2 to 5 percent.
Demand for oddments also continued, pushing prices up between 1 and 6 percent, with the North Island wools gaining the most.
Buyer demand today came from widespread markets. China and Western Europe dominated interest in the merino and mid micron wools. Chinese purchasers were also to the fore in the fine and coarse crossbred wools, receiving strong support from Australasian carpet mills, the Middle East and India and more limited support from Western Europe and the United Kingdom.
Next Thursday's auction will be a combined sale of North and South Island wool, in Napier and Christchurch, offering about 10,000 bales and 9700 bales respectively.
