Demand generally steady at sale

Press, 17 December 1988, Page 7

Demand generally steady at sale

Demand was generally steady for most types of wool at a combined sale of Timaru and Invercargill wools in Christchurch yesterday. The market appeared to have settled down after the fluctuations and uncertainty earlier in the week caused by the sacking of the Minister of Finance, Mr Douglas. Crossbred prices were described as being on a par with those at Thursday’s North Island sales, indicating that the market has stabilised. As long as the value of the New Zealand dollar against United States currency stayed at the present level, crossbred wool growers could look forward to a period of stable prices, according to wool exporters. The US-NZ dollar strengthened from 0.6191 on Thursday to 0.6227, a rise of 36 points. The market indicator yesterday eased 3c to 670 c a clean kilogram

from Thursday. A small offering of Merino fleece in the Timaru catalogues was of good length and colour and drew good competition. But the Halfbred and crossbred types were showing severe effects of the drought in the form of tenderness, short staples, and dust contamination. These poorer wools were discounted, although their prices were compensated to some extent by finer micron measurements. Any crossbreds and Halfbreds of well-grown length and in sound condition commanded a premium, as did secondshears of good colour. Buyers representing Russian, Eastern European interests and local mills gave strong support to the crossbreds, while China provided limited competition, according to brokers. The order of the Timaru sale was; Pyne,

Gould, Guinness 147 lots, 1641 bales; Wrightson 325 lots, 2715 bales; total 472 lots, 4356 bales. The Wool Board gave moderate support, bidding on 21 per cent and had 8 per cent (200 clean tonnes, 1695 bales) passed or sold to it. Merino and Halfbred prices compared with the Christchurch sale on Wednesday are: Merino fleece, 18 and 20 micron, generally unchanged; 19, 21 to 23, up to 2 per cent dearer; bulky skirtings, unchanged; Halfbred fleece, 25 to 31 micron, generally unchanged. Crossbred prices compared with the combined all North Island sale at Napier on Thursday are: Crossbred fleece and second-shear, 34 micron and finer, unchanged; 35 to 37 micron 1 per cent to 1.5 per cent cheaper; clothing oddments, 50 to 100 mm and longer, up to 4 per cent cheaper; second pieces and loxs, generally unchanged.