Wool prices to stay reasonably firm

Press, 12 January 1987, Page 2

Wool prices to stay reasonably firm

PA Wellington Wool auction prices are not expected to ease during January, in spite of good shearing weather and seasonal factors which will make it the peak wool auction selling month for the present season. The New Zealand Council of Wool Exporters in its wool market preview said auction prices will remain reasonably firm in real terms, although they will tend to reflect any movements in the Kiwi against international trading currencies. Bolstering the market, in spite of the increase in wool flow, are the commitments of exporters to' supply forward sold contracts. Some exporters are

seeking to cover their forward contracts early, in order to avoid any disruption to the export certification of wool which may result from the strike at the Wool Testing Authority. The council’s executive manager, Mr Bill Carter, said there was also some nervousness about the availability of better length wools of good colour. Sheep numbers were, down significantly on the previous year, as were supplies of stock wools which boosted exports during 1985/86 to record levels. Mr Patrick Desbonnets of Dewavrin Segard, Wellington, said be did not expect wool auction prices to ease in January if the Kiwi dollar retained its approximate relativity

with trading currencies. Mr Don Quested of Hart Wool said auction prices for crossbred wools were now at about the same levels in real terms as they were at the peak of the 1985/86 season. This, he said, meant they were much more expensive for customers who buy and sell finished textiles in United States dollars. For customers in strong currency areas, such as Germany and Japan, New Zealand wools were a little more expensive now than they were at the low point of the last season.

During this week 46,000 bales of wool will be sold at North Island centres and 32,500 bales in South Island centres — a reduction in the quantities previously rostered.