Wool prices withstand rising New Zealand dollar

Wool prices withstand rising New Zealand dollar

New Zealand Wool Services International Ltd reports that prices at today’s auction of North Island wool in Napier generally saw a limited offering met by a firm to stronger market.

Since the previous wool sale, on 17 June, the New Zealand dollar has strengthened in value by two per cent against a weighted indicator of the main international wool trading currencies, however buyer demand overcame what would normally have been a negative currency factor.

Of 6,000 bales on offer today, 80 per cent sold.

According to New Zealand Wool Services International, prices for fine crossbred types were generally firm.

While good and average style coarse fleece wool was firm to one per cent dearer, the poorer styles were affected by the currency factor and softened by up to two per cent.

Coarse shears ranged from buyers’ favour to one per cent dearer.

First lambs’ fleece generally rose in price by up to two per cent.

Prices for short oddments strengthened between one and two per cent.

Buyers representing Australasian carpet mills, India and China led demand at today’s sale, receiving limited support from Western Europe and the United Kingdom.

Next week’s auction, on Wednesday 30 June, will be a combined sale of North and South Island wool, offering approximately 4,000 bales and 11,000 bales respectively.

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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