IN THE MEDIA

Prices for most types of wool finished cheaper than the previous sale a week ago, at the last wool sale for the year in Christchurch. Due to continuing economic uneasiness in major wool-buying countries and bank funding restrictions, mills and buyers have delayed entering into longer-term contracts for greasy wool, said Dave Burridge, of PGG Wrightson Wool.

Godfrey Hirst says it won't appeal a High Court decision over a proposal to create a wool scouring monopoly in New Zealand. That leaves the way clear for Cavalier Wool Holdings, to proceed with its plan to buy the assets of Wool Services International, so it can merge the scouring services of two companies.

Joint venture company WoolCo has failed to raise the capital it was seeking to buy the country's largest wool exporter, Wool Services International (WSI). WoolCo, a joint venture between farmer-owned Wool Equities and Christchurch-based investment bank Ocean Partners, was seeking $40 million from farmers and other investors to purchase WSI and prevent its sale to Cavalier Wool Holdings.

Falling international demand pulled wool prices down further, at last week's sale of North and South Island wool. Despite a more favourable exchange rate, prices for most wool types fell by another 2-4% on last week, when buyer nervousness triggered by the European debt crisis started to show.

NZ Wool Services International Limited’s Marketing Executive, Mr Paul Steel reports that the combined North and South Island auction this week saw a 70 percent clearance with most types 2 to 4 percent cheaper. Despite the weighted indicator for the main trading currencies being 2.91 percent lower this potential positive factor was overruled by the current poor market conditions.