Wool prices hold firm against rising kiwi dollar

Wool prices hold firm against rising kiwi dollar

New Zealand Wool Services International Ltd reports prices were generally firm at this week’s wool sale, despite a stronger New Zealand dollar.

In the combined auction of North and South Island wool, held in Christchurch, 84 per cent of the 9,200 bales on offer sold.

Since the previous offering on 29 July, the New Zealand dollar has risen by 0.87 per cent against a weighted indicator of the main international wool trading currencies. Although this would normally have seen lower returns at the sale, today’s prices were generally up, especially in US dollar terms, as price improvements continued the trends of recent weeks and reflected the lower than anticipated volumes of wool available.

According to New Zealand Wool Services International, prices for mid micron fleece rose between one and three per cent, while finer crossbred wools were up between one and 2.5 per cent.

Coarse fleece tended firmer, with coarse shears up to one per cent dearer.

End of season first lambs’ fleece strengthened between one and 2.5 per cent, recapturing values lost at last week’s sale.

Oddments ranged from firm to three per cent dearer.

Buyers from China, India and Western Europe were dominated the sale, supported by interests representing Australasia, the United Kingdom and the Middle East.

Next week’s auction, on 12 August, will be in Christchurch, offering approximately 6,500 bales of South Island wool and 2,400 bales of North Island wool.

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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