22 Mar 2013

Increased supply puts pressure on wool prices

7:01 am on 22 March 2013

An increased supply and a slightly higher New Zealand dollar put some pressure on wool prices at this week's combined North and South Island sale.

More than 22,500 bales were offered for auction in one of the larger sales of the season and 90% were sold.

Exporter New Zealand Wool Services International reports that prices for fine cross-bred fleece and shears lifted slightly, but most coarse crossbred wools and some lambs wool lost ground.

However, general manager John Dawson says wool prices overall are holding their ground in contrast to predictions that prices this season would be 20% down on the previous year.

Mr Dawson says they have had the last major double sale of the season and prices held up well and expects that trend to continue.

He says if the drought reduces the supply, then prices could rise by the end of the season in June.