Strength of kiwi dollar knocks back wool prices

News release –

Strength of kiwi dollar knocks back wool prices

NZ Wool Services International Ltd reports that prices at today’s wool auctions were hit by the past fortnight’s increase in the value of the New Zealand dollar.

Since the previous sale on 21 May, the New Zealand dollar has strengthened by four per cent against the weighted wool indicator, which reflects the main wool trading currencies.

Today’s sale was among the largest of the season, with approximately 29,000 bales offered in the North and South Island wool auctions in Napier and Christchurch.

According to New Zealand Wool Services International, with the kiwi dollar stronger and the relatively large volume of wool on the market, lower prices in local currency values were to be expected this week.

Continuing limited demand coupled with grower dissatisfaction at the current market resulted in an average passing rate of 40 per cent.

A small selection of mid micron wools were four to ten per cent cheaper than when last offered on 14 May, reflecting downward price trends in other producing markets.

Fine crossbred fleece and longer shears eased by between six and ten per cent. Coarser end and shorter types also dropped in price, falling between one and three per cent.

A very small offering of coarse good colour fleece resisted the trend, strengthening by one per cent, though poorer styles softened between five and seven per cent. Good style coarse early shorn and second shears were firm to two per cent cheaper, with the South Island offering performing the best. Poor styles received less support, reducing three to seven per cent.

First lambs wools were three to six per cent softer with all oddment types also between three and six per cent easier.

China continues to dominate the market for the finer wool segments, with limited demand from all other sectors, particularly for carpet type wools.

The next New Zealand wool auction, of North Island wool only, will be held on Thursday 18 June, comprising approximately 12,000 bales in Napier.

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-

© Scoop Media