Wool wobbles under currency fluctuation

Wool wobbles under currency fluctuation

New Zealand Wool Services International Ltd reports mixed pricing signals at this week’s wool sales, with some types reacting to recent currency fluctuations, while others continued to increase in value.

In the combined auction of North and South Island wool in Napier and Christchurch, 80 per cent of the 15,500 bales on offer sold.

Since the previous offering on 22 July, the New Zealand dollar was up by 0.62 per cent against a weighted indicator of the main international wool trading currencies. However, the increase was substantially greater than this in the days preceding the sale. Despite this potentially negative influence on the local market, some categories were strongly contested, with prices firm to dearer.

According to New Zealand Wool Services International, fine crossbred fleece and shears were 1.5 to four per cent cheaper

Coarse crossbred fleece was generally firm, with the shear types firm to one per cent cheaper.

First lambs’ fleece was firm to three per cent cheaper

While long oddments ranged from one to two per cent easier, prices for short oddments went in the other direction, varying between two and six per cent stronger.

Buyers from China, India, Western Europe and the Middle East were to the fore at the sale, supported by interests representing Australasia and Asia.

Next week’s auction, on 5 August, will be in Christchurch, offering approximately 7,600 bales of South Island wool and 1,500 bales of North 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