North Island wool prices mirror currency movement

News release – North Island wool prices continue to mirror currency movement

New Zealand Wool Services International Ltd reports that prices for most types at today’s wool sale in Napier generally eased slightly compared to the previous North Island wool auction, reflecting the stronger New Zealand dollar.

However, some categories rose in value, as limited supply over-rode the currency impact.

Since the previous South Island sale on 17 September, the New Zealand dollar has fluctuated: first rising sharply, by up to three per cent against the United States dollar, then settling to just 0.5 per cent stronger than last week’s level. The New Zealand currency is, however, still nearly three per cent higher than for the comparative sale of North Island wool on 10 September.

Of 12,000 bales on offer today, 66 per cent sold.

According to New Zealand Wool Services International, this week’s low clearance was the result of some woolgrowers electing to withhold their wool from sale on the day, due to unsustainable values.

Of wools that did sell, the longer fine cross bred shears between 32 and 35 micron were 1.5 to 2.5 per cent easier and the shorter lengths ranged from firm to five per cent dearer.

Prices for most coarse carpet type full fleece wools increased, with shears firm to four per cent stronger, apart from the 2/3 inch average to poor styles, which eased slightly.

Oddments reduced in price between two and three per cent.

Australasian carpet mills, China, India and Western Europe led buyer interest at today’s Napier sale, with limited support from the Middle East.

Next week’s wool auction, on 1 October, will be of South Island wool, in Christchurch, offering approximately 13,100 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.

Indicators and prices for key wool types from this week's sale (xls)

ENDS

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