Restricted demand weakens prices of all types of wool (New Zealand)

New Zealand Wool Services International Limited reported that comparatively large offering of 21,600 bales from both the North and South Island this week on the back of restricted demand saw nearly all types weaken. The weighted indicator for the main trading currencies was hardly changed compared to the last sale on 21st June, strengthening 0.13 percent.

There was a 71 percent clearance. Mid Micron Fleece 28.5 micron and finer resisted the trend and were generally 3 percent dearer, with 29 to 30.5 microns firm to 3 percent cheaper. Fine Crossbred Fleece were 3 to 4 percent easier with the Fine Crossbred Shears generally 2 to 5 percent weaker, however there were premiums paid for the finer, shorter types.

Better colour Coarse Crossbred Fleece were 3 to 6 percent down, with the poorer styles which were in stronger demand, remaining firm. Coarse Second Shears ranged from 2 to 7 percent weaker. This category made up over 70 percent of the offering. First Lambs were 1 to 5 percent softer with the South Island down the most.

Coarse Oddments in the North were generally firm to 3.5 percent stronger with the South Island selection weakening 7 to 9 percent; however prices are still well above the North Island levels.

Wider competition with China, Western Europe, United Kingdom principals supported by India and the Middle East.