Resurgent NZ Dollar Drops Wool Prices

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the South Island offering of 9,000 bales saw a firm market for types in demand with the remainder being cheaper as the strong New Zealand dollar impacted on prices. This created a lower selling rate with a 76 percent clearance.

The weighted indicator for the main trading currency lifted 1.58 percent, with the US dollar compared to the last sale on 4th April 2.03 percent higher.

Mr Dawson advises that the rapidly appreciating NZ dollar has put a degree of uncertainty into the local market with some sectors easing more than the currency movement.

A very nominal offering of Mid Micron Fleece came back 6 to 8 percent influenced by comparative drops in the Australian finer wool market recently.

Fine Crossbred Fleece and Shears ranged from 2 to 5 percent cheaper.

Good Colour Coarse Crossbred 36 to 37 micron were 3 percent down, bringing them back into line with their coarser counterparts which remained firm.

Longer Coarse Shears were Buyers Favour with 3 to 4 and 2 to 4 inch wools 2 to 5 percent easier. The 2 to 3 inch wools remained firm. Combing Oddments were 1.5 to 3 percent softer with Good Colour Short Oddments firm and poorer style up to 1.5 percent cheaper.

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

Next sale on 18th April comprises approximately 7,350 bales from the North Island which is 20 percent less than the anticipated roster quantity.

ENDS