Strong dollar pushes local wool prices down

News release - Strong dollar pushes local wool prices down

New Zealand Wool Services International Ltd reports that prices at today’s wool sales declined for most types.

Since the previous sale on 18 September, the New Zealand dollar has risen by three per cent against the United States dollar. The strengthening currency, coupled with recent quiet international trading, combined to push prices down, with most types dropping between 2.5 and five per cent.

In the combined auction of 14,800 bales of North and South Island wool in Napier and Christchurch, halfbred fleece between 25 and 27.5 micron weakened by 3.5 per cent, while 28 to 29.5 micron slipped by 4.5 to five per cent.

Fine crossbred fleece and early shorn types weakened by up to three and 3.5 per cent respectively.

Crossbred fleece declined 2.5 to three per cent.

According to New Zealand Wool Services International, crossbred second shears 3/4 and 2/4 were three per cent cheaper in the North Island, whereas similar types in the South Island were buyer’s favour to firm.

Demand for crossbred combining oddments remained relatively strong,

Crossbred clothing oddments were two to three per cent cheaper in the North Island, while prices for these types remained firm in the South Island.

Next week’s sale of South Island wool offers approximately 9,600 bales and will take place in Christchurch on 2 October

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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