Wool prices rise on weaker kiwi dollar

News release - Wool prices rise on weaker kiwi dollar

New Zealand Wool Services International Ltd reports prices lifted for most types at today’s auction of 10,700 bales of North Island wool in Napier.

A weaker currency, along with renewed Chinese interest, assisted these gains.

Since the previous sale on 16 April the New Zealand dollar has weakened against a weighted indicator of the main wool trading currencies, most markedly dropping 3.8 per cent against the United States dollar.

According to New Zealand Wool Services International, the fine crossbred sector and lambs’ wool was highly sought after, with prices generally increasing between three and five per cent. On limited volumes, the 35 micron bracket spiked between 17 and 21 per cent.

Coarser carpet type fleece and shears struggled to capture the full currency advantage, rising in price between two and five per cent. An exception was the better colour shears, where increased volumes were on offer compared to last week’s South Island sale, resulting in these types easing by up to 2.5 per cent.

Coming off a very low base, all oddment types made good gains, lifting between four and eight per cent.

Most significant buyer interest at today’s sale was from China, India and Australasian carpet mills, with limited support from elsewhere.

Next week’s sale of South Island wool is on 30 April, in Christchurch, offering approximately 13,000 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.

Attached table

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

NZ Pub COF prices (xls)

ENDS

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