Wool values gain on the dollar

Wool values gain on the dollar

New Zealand Wool Services International Ltd reports that prices at today’s auction of South Island wool, in Christchurch, held firm against the rapidly appreciating New Zealand dollar, which had been anticipated to push prices down.

Merino wools rose the most since last offered on 6 September, generally strengthening by seven per cent. The increase in merino prices went against the currency influence, instead capitalising on recent gains in the Australian market.

According to New Zealand Wool Services International mid micron wools also completely ignored the stronger New Zealand dollar, which has risen 3.8 per cent against the United States dollar since last week’s auction. In spite of the currency rise, mid micron wools strengthened between 1.5 per cent and three per cent on strong interest from western European spinners and local mills.

Although softening by 1.5 per cent to 2.5 per cent, the carpet wool sector was relatively well supported as low seasonal flow intensified competition, limiting the impact of the rising currency.

Second shear wools in particular held well, remaining firm to one per cent cheaper.

Next week’s combined North and South Island sale will be held on 27 September, comprising 9,900 bales in Napier and 8,300 bales in Christchurch.

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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