South Island wools resist stronger dollar

South Island wools resist stronger dollar

NZ Wool Services International Ltd reports that prices for coarse types at today’s South Island wool auction withstood a rise in the New Zealand dollar, though mid micron wools slipped in price.

Since the previous sale on 30 July the New Zealand dollar has appreciated by 2.56 per cent against a weighted index of the main wool trading currencies and by 3.5 per cent against the United States dollar. However, prices at today’s sale resisted any anticipated negative impact such a currency shift might normally cause.

Around 72 per cent of the approximately 12,400 bales on offer today sold, with prices for coarse wool firm to dearer.

According to New Zealand Wool Services International, with interest from China and Western Europe subdued due to many Northern Hemisphere processors closing for summer vacation, compared to the last South Island auction on 23 July, mid micron fleece wools were two to five per cent cheaper.

Fine crossbred fleece and shears were firm to two per cent dearer as a result of Chinese customers showing greater interest in these types during recent weeks. Good colour coarse carpet type fleece wools were firm to one per cent stronger, while a limited offering of poor styles attracted considerable competition, gaining between four and six per cent.

Second shears 3/4 inches and longer were fully firm to four per cent dearer With large volumes of short shears on the market at present, prices for these types eased between three and five per cent compared to 23 July, though remained above last week’s North Island returns for the same wools.

First lambs wools rose between 1.5 and five per cent. Combing oddments were well sought after, gaining six to 11 per cent, while the shorter clothing types sold in line with last week’s North Island prices, easing between two and four per cent on their previous South Island appearance.

Competition from different international markets was well spread, led by buyers representing Australasia, India, China and the Middle East, with support from Western Europe and the United Kingdom.

The next wool auction will be held in Christchurch on Thursday 20 August, comprising approximately 15,000 bales of South Island wool.

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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