NZ wool prices drop at auction as stronger currency bites

NZ wool prices drop at auction as stronger currency bites

By Tina Morrison

Aug. 12 (BusinessDesk) - New Zealand wool prices declined at yesterday's auction as a stronger local currency made the country's exports less attractive.

Some 55 percent of the 8,640 bales on offer at yesterday's North Island auction were for strong crossbred second shear wool. The prices for 37-micron second-shear wool fell to $4.75 a kilogram, from $4.85 when the fibre was last traded in the North Island three weeks ago, and the price is 18 percent below the same period last year, according to AgriHQ. The price for strong crossbred fleeces also slipped, with 39-micron wool at $5.45/kg from $5.55/kg at last week's South Island auction, and 6 percent below last year's price.

"The strong New Zealand currency was a major limiting factor at this week's North Island auction - prices generally retreated on the previous auction," said AgriHQ analyst Shaye Lee.

The country's weekly wool auctions alternate between the two main islands where wool types can vary. The next sale on Aug. 18 will include about 6,300 bales from the South Island, down 3,200 bales on the anticipated roster due to recent adverse weather conditions, according to New Zealand Wool Services International.

(BusinessDesk)

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