Strengthening NZ dollar affects wool values

Strengthening NZ dollar affects wool values
New Zealand Wool Services International Ltd reports that prices at today’s wool auctions, the final sales for 2008, fared better than expected, considering the strengthening New Zealand dollar and difficult trading conditions.

Since the previous sale on 11 December, the New Zealand dollar has risen 8.8 per cent against the US dollar.

According to New Zealand Wool Services International, in the combined auction of 24,000 bales of North and South Island wool in Napier and Christchurch, the relatively large amount of wool on offer in a difficult trading period, saw most types fare better than was anticipated, with prices in overseas clients’ terms generally remaining firm or strengthening, except for the Euro prices.

There was also considerable price differences between the two selling centres due mainly to the volumes offered, with greater volume but lower price levels in the North Island than in the South.

On a combined basis, mid micron fleece 25 to 29.5 microns were three to eight per cent cheaper and 29.5 to 31.5 microns up to 1.5 per cent cheaper.

Fine crossbreds and hogget wools were between one and three per cent cheaper for 32 to 34 micron with the coarser types three to 4.5 per cent cheaper.

Good style coarse crossbred fleece and shears were 1.5 to 3.5 per cent cheaper with the poor styles six to eight per cent cheaper.

First lambs resisted the trend by only easing one to two per cent.

Oddments were generally two to four per cent cheaper.

Main competition was from Australasian carpet mills, China and India, supported by the Middle East and Western Europe.

The first wool sale for 2009 will be a combined sale of North and South Island wool on 8 January, in Napier and Christchurch, offering approximately 17,000 bales and 8,600 bales respectively.

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

Attached table

Please find attached tables covering indicators and prices for key wool types from this week's sale.

SI_Sale_18.12.08.xls

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