Wool market resists stronger NZ dollar

Wool market resists stronger NZ dollar

New Zealand Wool Services International Ltd reports that prices of 16,900 bales at today’s North and South Island wool auctions largely resisted the stronger New Zealand dollar.

While the dollar has increased in value by 2.7 per cent against the United States dollar since the previous wool sale on 24 January, prices today only eased between one and two per cent.

Fine crossbred and hogget wools ranged from being firm to 1.5 per cent softer, benefiting from continued Chinese interest.

Better style, longer crossbred fleece wools were well sought after, with the best lines remaining firm. While average style fleece eased 1.5 per cent, the seasonally larger volumes of poorer styles came back by up to 2.5 per cent.

According to New Zealand Wool Services International, growing concern over rapidly diminishing stock numbers and the continuing drought have cast doubt over the volumes likely to be available for the balance of the season. As a result, coarse shears in both islands only softened slightly from last week, helping to maintain prices.

Lambs’ wool softened between one and two per cent, with the finer microns maintaining value the best.

Oddments eased in line with the rest of the market, coming back between 1.5 and three per cent for the longer types, and up to 1.5 per cent for the shorter lengths.

The next wool auctions will be held on Friday 8 February, again combining North and South Island wool, comprising 9,700 bales in Napier and 10,800 bales in Christchurch.

New Zealand Wool Services International publishes a detailed weekly report on New Zealand wool auction trends. A summary of this can be viewed at http://www.nzwsi.co.nz. The full report is available by negotiation with the company.

-ENDS-

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