2 Mar 2012

Wool market continues to firm

6:28 am on 2 March 2012

The wool trade has continued to firm, with signs of demand picking up in some markets.

This week's sale of South Island wool was a smaller one, with about 8500 bales up for auction.

There was little impact from the exchange rate, and almost 90% of the wool was sold.

New Zealand Wool Services International, says a rise in customer activity in recent days has steadied a previously flat market.

However, while demand for some types of wool has increased, others are still struggling.

Fine crossbred fleece and shears were up to 2.5% dearer as a result of steady Chinese interest.

Coarse full cross-bred fleece, gained up to 3% more, but prices for the shears were mixed.

Coarser lambs wool also lifted by up to 3%, but fine lambs wool eased slightly.

Next week's sale will offer about the same amount of South Island wool, along with almost 18,000 bales from the North Island.