Stronger dollar softens local wool prices

Stronger dollar softens local wool prices

New Zealand Wool Services International Ltd reports that prices softened for most types at today’s wool sales, reacting to a correspondingly stronger New Zealand dollar.

In the combined auction of North and South Island wool in Napier and Christchurch, 78 per cent of approximately 29,000 bales on offer sold.

Compared to the previous sale, on 4 March, the New Zealand dollar rose in value against a weighted indicator of the main international wool trading currencies by 1.22 per cent. Coupled with the current finely balanced supply-demand situation and limited shipping space, purchasing activity was restricted and prices fell accordingly for most types.

According to New Zealand Wool Services International, the fine crossbred sector was firm to two per cent cheaper, with these wools mainly sought after for the Chinese market.

Coarse crossbred fleeces eased two to three per cent, with the poorer faulted styles falling furthest. Coarse shears resisted the trend, remaining firm to only 1.5 per cent easier

Finer lambs wool types eased between one and 3.5 per cent with the longer coarser types attracting strong interest and strengthening in price, against the rest of the types, by between one and five per cent.

Oddments also attracted good interest ranging from firm to two per cent easier.

Main interest today was from Australasia, India, China and the Middle East with support from the United Kingdom and Western Europe.

Next week’s auction, on 18 March, will be in Christchurch only, consisting of 9300 bales of South Island wool.

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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