This week's wool sale was held in the South Island only. There were 10,334 bales on offer, a bit more than originally anticipated. Of these bales, 74% of them sold as they reached market reserves or above. Increased demand for wool outweighed the appreciation in the currency along with growers continuing to resist lowered price levels for their wool. The NZ dollar increased two and half percent to US77c while the weighted average currency indicator which measures the NZ dollar against major trading currencies, was also firmer on 0.6984.
There was a good spread of buyers this week with buyers from China, India, Western Europe and Australasia dominating. There was also support from the Middle East and the UK.
The South Island sale had a variety of wool on offer, but it mainly consisted of coarse and fine crossbred fleece and shears and first lambs wool. Coarse crossbred wool 36 microns to 39 microns was 5% dearer when compared to last weeks North Island sale. Shears were also noticeably dearer with all lengths increasing by 4% to 5% in price.
Fine crossbred fleece was firm when compared to the last offering in the South Island while mid micron fleece was 5% cheaper. Fine crossbred shears 33 to 35 microns was 2.5% dearer than last weeks sale.
First lambs wool was 2-3% more expensive than the last South Island but only increased by 1% on last weeks North Island sale. Crossbred combing and clothing oddments were 2% up on last week.
Next week's sale will be held in the North Island and will consist of approximately 12,500 bales of wool.
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