Wool prices

Wool buyers say they are looking for price consolidation to retain their confidence.

Store stock prices appear to have settled at levels much higher than last year, but agents say prices are not out of control.

Wool prices appear to have lost some of their earlier momentum, with falls matching rises at last week's combined sale of North Island and South Island wool.

The growing influence of China as a buyer of New Zealand wool was illustrated last week when prices eased, due in part to China's absence as it marked New Year.

Wool prices reached levels last seen in the late 1980s at last Thursday's combined North Island and South Island sale.

The rebuilding of storm-decimated ewe flocks could be hampered by competing record mutton prices which are returning $100-plus a ewe to farmers - similar prices to prime lambs.

The first wool sale of the New Year started on a strong note last week, with prices for most lines increasing.

Wool prices firmed at last week's wool sale in Christchurch, with more than 95% of the offering selling.

Wool prices benefited at last week's auction from a softening exchange rate and falling supply.

Strengthening of the New Zealand dollar took the steam out of the rising wool market at last week's combined sale of North Island and South Island wool.