South Island wool prices react to rising dollar

News release – South Island wool prices react to rising dollar

NZ Wool Services International Ltd reports that prices generally moved with the currency shift at today’s South Island wool auction.

Since the previous sale on 10 September, the New Zealand dollar has risen by two per cent against a weighted index of the main wool trading currencies.

Today’s offering of approximately 13,900 bales saw 80 per cent sold, with price shifts generally mirroring the stronger dollar.

According to New Zealand Wool Services International, since the previous South Island wool sale on 3 September, merino fleece 17.5 micron and finer has eased in price by between two and four per cent; 18 and 20 micron were one per cent cheaper; while 18.5 to 19.5 micron fell by between three and six per cent.

Fine crossbred fleece and shears were firm to three per cent down, with the shorter types dropping furthest.

Coarse crossbred fleece softened one per cent, while coarse shears ranged between 1.5 per cent falls for the longer end to two per cent rises for the shorter end. This sector resisted the negative currency impact the most, largely responding to recent strong demand.

Oddments also withheld the strengthening currency, with combing types remaining fully firm and clothing types rising between two and four per cent.

Apart from the coarser fleece, all other categories achieved higher prices than when last sold in the North Island, on 10 September.

Interest at today’s sale was widespread, with buyers from Western Europe and China dominating the fine wool sector. Meanwhile, buyers from Australasian carpet mills, the Middle East, India and China were to the fore on the coarser wools, supported by Western Europe.

Next week’s wool sale will be on 24 September, offering approximately 11,500 bales of North Island wool 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.

Attached table

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

Sale 17.09.09 (xls)

Note to editor:
The full and detailed version of the New Zealand Wool Services International New Zealand Wool Report is taken by various national and international corporations, exchanges and agencies, including NZX, Reuters, the UK Wool Report, Meat and Wool New Zealand, Australian Wool Exchange and various others including bank economists and analysts.

ENDS

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