Wool prices driven up by strong US dollar
News release - Wool prices driven up by strong United States dollar
New Zealand Wool Services International Ltd reports that prices at today’s wool sales strengthened in most types between two and five per cent.
In the combined auction of approximately 23,000 bales of North and South Island wool in Napier and Christchurch, prices rose for the bulk of the offering, driven up by the resurgent United States currency.
Since the previous sale on 17 July, the strong United States dollar has pushed the New Zealand dollar down five per cent.
According to New Zealand Wool Services International, mid micron wools were strongly sought after, increasing in price between five and seven per cent under robust competition from European processors, particularly in the better prepared lines.
Finer crossbred fleece and hogget wools rose between three and four per cent, with the South Island types attracting the most interest.
Good colour coarse crossbred pre lamb shorn sound fleece strengthened three to five per cent, with the average styles attracting more limited attention
Second shears, lamb fleece and oddments all appreciated between two and five per cent, with the longer, better style types receiving most support.
Adverse weather conditions continue to disrupt shearing in many parts of the country. Combined with the effects of lower stock numbers, this has reduced anticipated wool flows. As a consequence, next week’s scheduled 7 August sale has been cancelled. This follows the earlier cancellation of the scheduled 24 July wool auction.
The next auction, of South Island wool only, will be held on Thursday 14 August, comprising approximately 7,000 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.