The Australian wool market was sober this week and prices inched up from previous week’s level. The softness indicated that demand although was strong but not enough to keep the market up. The EMI was up Aus cent 4 to Aus$8.78 a kg while in US$ terms it lost US cents 8, ending the week at US$7.78 a kg. The North Australia index closed at US$7.95 a kg, while West Australia was at US$7.89 per kg. The South Australia Index closed at US$7.55 a kg.

New Zealand - Wool continues rise despite currency influence [ 02 Sep, 2010]

New Zealand Wool Services International Ltd reports that prices at this week’s wool sale continued to rise, despite the negative currency influence.

In the combined auction of North and South Island wool, 89 per cent of the 9000 bales on offer sold.

Since the previous offering on 26 August the New Zealand dollar has increased in value against a weighted indicator of the main international wool trading currencies by 1.02 per cent. However, ongoing strong demand, which has been evident over the past few weeks, over-rode that effect.

Prices for customers purchasing in United States dollars have now increased by more than six per cent since early July, while the currency movement has only been one per cent.

According to New Zealand Wool Services International, today’s prices for mid micron fleece were up by between two and five per cent, while fine crossbred fleece and shears rose by between one and four per cent.

Coarse crossbred fleece was firm to slightly stronger, while coarse shears lifted by between 1.5 and three per cent.

Oddments ranged from firm to four per cent dearer.

Buyers from India, China, the Middle East and the United Kingdom dominated strong competition at today’s sale. Interests from Australasia and Western Europe took supporting roles.

Next week’s auction, on 9 September, will be in Napier and Christchurch, offering approximately 6600 bales from the North Island and 5800 bales of South Island wool.

Source: New Zealand Wool Services International

Italian wool market revives [ 30 Aug, 2010]

Fine wool has rallied, with European processors buying up again after the Global Financial Crisis.

The fine end of the wool market has been subdued for the last couple of years, with millers closing down or scaling back.

Bill Cowley, from Australian Wool Network, says Italian buyers were active again last week after getting back on their feet.

"Their industry has had a big restructure, they've closed a lot of mills in Italy, there's very little wool processing actually happening in Italy now," he says.

"So the ones that do remain have pretty much run out of wool and they've got some business to do.

"They need wool and they recognise that there's very little good quality spinners wool around these days, so they need to hook in and buy the stuff."

Source: abc.net.au