Larger supply brings wool prices down

05 Aug '11

2 min read

Owing to much larger than normal quantities of supply, the prices of wool declined at the New Zealand auction on Thursday.

About 74 percent of the 9,600 bales were sold at the North and South Island combined wool auction.

Interest in the auction was limited as buyers from United Kingdom and European countries have their annual holidays. Although the New Zealand currency fell by 0.85 percent against the major wool trading currencies, it had little impact on sales.

Prices of mid-micron wools of 26.5 to 27.5 micron declined by one percent compared to the previous auction held a week earlier. While prices of 29 and 30 micron wools declined 2.5 percent, the price of 28 micron wools, which were in high demand, increased 2.5 percent.

Prices of coarse crossbred fleece and second shear 3/4 inch declined one to 1.5 percent. Price of good colour combing wools increased two percent, while price of 2/3 inch wools rose 3.5 percent.

Compared to the July 28 North Island auction, prices of fine crossbred early shorn, second shear types and good colour 2/4 and 2/3 inch types declined 1.5 to three percent. The varieties for which prices increased were coarse crossbred early shorn and second shears B minus 3/5 inch, which increased by 2.5 percent. Good colour 3/4 inch wools found buyers' favour.

Buyers from Australasia showed keen interest, while there was limited participation of buyers from China, India, the United Kingdom and Western Europe.

Around 7,200 bales of wool from the South Island and another 2,000 bales from the North Island are expected to be put on auction at next sale on 11 August.

Fibre2fashion News Desk - India