Currency Correction Propels Prices At Wool Sale

Currency Correction Propels Prices At North Island Wool Sale

New Zealand Wool Services International Ltd reports that prices at today’s auction of North Island wool in Napier increased, mainly due to the weaker New Zealand dollar.

Since the most recent wool sale, on 14 January, the New Zealand dollar has eased in value against a weighted indicator of the main international wool trading currencies by 2.17 per cent. Combined with strong market interest, this currency effect caused some wool types to appreciate significantly.

Of 9,900 bales on offer today, 94 per cent sold.

According to New Zealand Wool Services International, prices for fine crossbreds of 33 micron were up to 1.5 per cent, dearer with 34 and 35 micron between three and seven per cent stronger.

Coarse carpet fleece and shears ranged from 1.5 to three per cent dearer with the better styles more strongly contested.

First lambs fleece increased dramatically, by between eight and nine per cent, as exporters struggled to meet demand from Chinese manufacturers.

All oddments were two to three per cent dearer.

Competition at today’s auction was strong, dominated in the finer wool types by buyers from China. Australasian carpet mills, India and the Middle East pursued the carpet wool types most vigorously, with support from Western Europe and the United Kingdom.

Next week’s auction, on 28 January, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 11,000 bales and 14,000 bales respectively.

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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