Strong Dollar Caps Wool Prices

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the 9,100 bales of South Island wool at auction this week saw an 89 percent clearance with a relatively strong showing despite the substantially higher NZ dollar compared to the trading currencies.

The weighted indicator for the main trading currencies compared to the last sale on 21st March was 2.02 percent higher. The Euro was particularly affected with a 2.55 percent change.

Mr Dawson advises that continued steady demand from Chinese manufacturers helped under pin the market combined with a fall-off in wool volumes as the effect of the wide spread drought conditions starts to take its toll. Some types came under pressure and lifted in value with others remaining firm or easing by the currency factor. In general prices will now be dearer to off shore customers.

Mid Micron Fleece were 2 to 4 percent dearer. Fine Crossbred Fleece were 1 to 2 percent dearer with Fine Crossbred Shears 3/5 inch and 3/4 inch 1 to 3 percent dearer and 2/4 inch and shorter firm.

Good colour Crossbred Fleece were firm to 2 percent easier with poorer styles firm to 1.5 percent dearer. Coarse Crossbred 3/5 inch shears tended buyers favour with 3/4 inch and shorter were firm to 2 percent cheaper.

First Lambs were generally firm to 2 percent cheaper.

Good Colour Long Oddments were firm with the poor styles 2 to 3 percent cheaper. Short Oddments were firm to 3 percent easier.

Limited competition with China principal, supported by Australasia, Western Europe, India and the United Kingdom.

Next sale on 4th April comprises approximately 8,900 bales from the North Island which is 26 percent less than anticipated.

ENDS