Wool Prices Ease Back as Kiwi Dollar Lifts

Wool Prices Ease Back as Kiwi Dollar Lifts

New Zealand Wool Services International Ltd reports that weaker demand and a rising New Zealand dollar caused prices to drift downwards at today’s sale of North and South Island wool.

Compared to the last sale on 7 April, the weighted indicator for the New Zealand dollar against the main wool trading currencies is up 1.05 per cent

Of the 9,300 bales on offer today, 69 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, some wool types eased by greater than the currency factor today.

“The market is consolidating at a level slightly below the large gains made during March. This is attributable partly the continuing strong New Zealand dollar and partly to softer market sentiment.

“Fine crossbred fleece and shears were down between 1.5 and three per cent.

“Good style coarse carpet type fleece was fully firm, with poorer styles easing up to three per cent. Coarse shears softened between one and four per cent, with prices for the shorter types down furthest.

“Lambs’ fleece eased between one and four per cent due to a decline in interest from China over the past week.

“Oddments also softened between one and four per cent,” he said.

Representatives of markets in Australasia and Western Europe were the most active buyers at today’s sales. Those from the United Kingdom, China India and the Middle East provided support.

Next week’s sale, on 20 April, has been cancelled due to the lack of wool. At the following rostered sale, on 28 April, approximately 13,000 bales from the North Island and 7,500 bales from the South Island are scheduled to be offered.

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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