Prices at North Island Wool Sale Fall

Prices at North Island Wool Sale Fall in Response to Rising New Zealand Dollar

New Zealand Wool Services International Ltd reports that prices for most types at today’s auction of North Island wool in Napier eased proportionate to the stronger New Zealand dollar as the market settled back from its significant recent gains.

Since the previous wool sale, on 11 February, the New Zealand dollar has strengthened in value by 1.54 per cent against a weighted indicator of the main international wool trading currencies.

Of 8,600 bales on offer today, 81 per cent sold.

According to New Zealand Wool Services International, prices for fine crossbred shears dropped between 2.5 to 4.5 per cent while lambs’ fleece softened between one and 2.5 per cent.

Coarse fleece and shears ranged from firm to three per cent cheaper, with oddments also between firm and three per cent easier.

A combination of the currency factor, Chinese New Year vacations and increased volumes placed into next week’s wool auctions accounted for the weaker sentiment this week. Main competition at today’s sale was from Australasian carpet mills, India, the Middle East and the United Kingdom, with support from China and Western Europe.

Next week’s auction, on 25 February, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 10,700 bales and 17,000 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.

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