Wool value gains defy currency factor

News release – Wool value gains defy currency factor

New Zealand Wool Services International Ltd reports prices for most wool types continued their upward trajectory at today’s sale, despite an unfavourable currency factor.

In a combined offering of approximately 8,300 bales of North and South Island wool, 81.6 per cent sold.

Since the last wool sale on 23 June the New Zealand dollar has increased in value against a weighted indicator of the main wool trading currencies by 116 per cent, and continued to rise as today’s sale progressed.

New Zealand Wool Services International general manager John Dawson said limited seasonal volumes have combined with continued strong market interest, particularly from China and India, to aid the recent resurgent value of wool

“Mid micron wools were firm to 1.5 per cent stronger, with the coarser end mid microns recovering ground on last week’s easier market.

“Fine crossbred fleece and shears generally rose by up to 1.5 per cent, while fine crossbred fleece and shears rose in price by up to 1.5 per cent and longer coarse shears were between one and three per cent stronger, with the shorter North Island types also rising by up to two per cent. However, the same types in the South Island eased by three per cent, bringing price levels in the two islands into much closer alignment.

“First lambs’ wools were generally firm, as were the bulk of the coarse oddments,” he said.

According to John Dawson, today’s auction was strongly contested, with China, India and Australasia dominant, while buyers from the United Kingdom, Western Europe and the Middle East provided strong support.

Next week’s sale, on 7 July, is of North Island wool only and is scheduled to offer approximately 5,700 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.

-ENDS

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