26 Feb 2010

Wool prices ease at national sales

6:07 am on 26 February 2010

Wool prices eased again for most types at the North and South Island sales on Thursday, mainly due to a big increase in the amount of wool put up for auction.

Wool Services International reports that almost 30,000 bales were offered, about 30% more than expected.

That neutralised the impact of a lower dollar, which would normally have had a positive influence on prices.

WSI says a shortage of shipping space, caused by freighting providers scaling back services in response to the glocal credit squeeze, also limited wool exporters' buying activity.

As a result: coarse carpet type full fleece and shorter shears sold for up to 3% less than last week, and first lambs wool and oddments were up to 2% cheaper.

However, a small offering of finer crossbred fleece resisted this trend and sold for up to 6% more.