Market over-rides strong currency at wool sale

News release –

New Zealand Wool Services International Ltd reports that prices at today’s wool sale in Napier strengthened, despite a rising New Zealand dollar.

Since the previous South Island sale on 1 October, the New Zealand dollar has increased in value by 1.75 per cent against a weighted indicator of the main international wool trading currencies.

However, limited wool volumes and steady recent demand over-rode the influence of the currency to drive prices up.

Of 10,700 bales on offer today, 84 per cent sold.

According to New Zealand Wool Services International, since the previous North Island wool sale on 24 September, fine crossbred wools longer than 3/5 inches were firm to two per cent up, with the shorter types well sought after, rising between two and five per cent.

Prices for coarse full-length fleece also rose slightly, with shears increasing up to two per cent.

All oddment types came under sustained interest, lifting between five and seven per cent.

These latest price lifts now bring all North Island wool categories into line with last week’s strong South Island sale.

Buyers representing Australasian carpet mills dominated competition for the coarse shears, with support from India, China and Western Europe for the balance of the offering.

Next week’s wool auction, on 15 October, will be of South Island wool, in Christchurch, offering approximately 10,300 bales, which is below the rostered quantity.

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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