Strong dollars pushes down local wool prices
Strong New Zealand dollars pushes down local wool prices
New Zealand Wool Services International Ltd reports that prices suffered at today’s combined auction of 17,600 bales of North and South Island wool in Napier and Christchurch as a result of a significantly stronger New Zealand dollar.
The New Zealand dollar has risen 2.2 per cent against the US dollar since the previous wool sale on 21 February,
Average and poorer style wools generally eased by the full currency factor. Full fleece types experienced the greatest impact in the North Island sale, while in the South Island second shears softened the most.
According to New Zealand Wool Services International, good colour coarse early shorn and full fleece wools withstood the currency pressure, remaining very firm on the back of stiff competition as volumes of these types seasonally diminish.
Prices of longer lambs wool remained firm as a result of increased Chinese activity, however the shorter lengths eased in line with the currency, with the greatest impact felt for the North Island lamb offering.
The next wool auctions will be held on Thursday 6 March, combining North and South Island wool, comprising 18,200 bales.
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.