Rising Kiwi Dollar Dampens Local Wool Prices

Rising Kiwi Dollar Dampens Local Wool Prices

New Zealand Wool Services International Ltd reports that, in response to the stronger New Zealand dollar, prices at today’s sale of North and South Island wool eased slightly.

Compared to the last sale on 31 March, the weighted indicator for the main wool trading currencies has strengthened 1.71 per cent

Of the 18,733 bales on offer today, 85 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, today’s price decline was specific to New Zealand currency only.

“General demand remains solid, so although local prices dropped slightly, market levels will largely be higher for overseas clients in their own currency.

“Fine crossbred fleece and shears were up to two per cent easier.

“Coarse crossbred fleece was generally 1.5 per cent softer, with second shears ranging from firm to three per cent lower.

“Long first lambs wools were up to three per cent cheaper, with the shorter types between firm and four per cent cheaper.

“Although oddments were three to four per cent easier in the South Island, strong interest in the North Island resulted in firm to one per cent increases at that sale,” he said.

Buyers representing China, India and Australasia dominated good competition at the sales today, supported by the Middle East, Western Europe and the United Kingdom.

Next week’s sale, on 14 April, is 35 per cent short of anticipated rostered amounts, offering approximately 1,700 bales from the North Island and 6,500 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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