Wool prices hit by higher dollar and poor demand
News release
Wool prices hit by higher NZ dollar and poor consumer demand
New Zealand Wool Services
International Ltd reports prices at today’s auction of
11,020 bales of North Island wool in Napier saw most types
ease under pressure from a stronger New Zealand dollar and
low demand.
Against a weighted currency indicator, taking into account the percentage of wool exported in the main trading currencies of United States dollars, Australian dollars, sterling and Euro, the New Zealand dollar has strengthened one per cent since the previous sale on 2 April.
According to New Zealand Wool Services International, some of the price movements have been over-emphasised due to two factors: the higher volumes of poorer styled faulted wools on offer this week, and the difficulty of trying to compare disparate wool types between sales in the North and South Islands
Demand is still the overriding driver, attributed to the poor housing market, which has reduced manufacturing requirements. This week that effect resulted in only a 56.4 per cent auction clearance.
Exceptions to the generally lower prices were the limited volumes of B style fleece, which were four to seven per cent dearer; some local mill style shears, which rose by up to two per cent; and second lambs wool, which sold at two to five per cent above previous levels.
Most other types on offer sold at prices three to six per cent below the previous sale.
Most significant buyer interest at today’s sale was from Australasian carpet mills, India and Western Europe. Additional support came from the UK and China.
Next week’s sale of South Island wool is on 16 April, in Christchurch, offering approximately 15,200 bales.
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-