Wool continues rise despite currency influence

Wool continues rise despite currency influence

New Zealand Wool Services International Ltd reports that prices at this week’s wool sale continued to rise, despite the negative currency influence.

In the combined auction of North and South Island wool, 89 per cent of the 9000 bales on offer sold.

Since the previous offering on 26 August the New Zealand dollar has increased in value against a weighted indicator of the main international wool trading currencies by 1.02 per cent. However, ongoing strong demand, which has been evident over the past few weeks, over-rode that effect.

Prices for customers purchasing in United States dollars have now increased by more than six per cent since early July, while the currency movement has only been one per cent.

According to New Zealand Wool Services International, today’s prices for mid micron fleece were up by between two and five per cent, while fine crossbred fleece and shears rose by between one and four per cent.

Coarse crossbred fleece was firm to slightly stronger, while coarse shears lifted by between 1.5 and three per cent.

Oddments ranged from firm to four per cent dearer.

Buyers from India, China, the Middle East and the United Kingdom dominated strong competition at today’s sale. Interests from Australasia and Western Europe took supporting roles.

Next week’s auction, on 9 September, will be in Napier and Christchurch, offering approximately 6600 bales from the North Island and 5800 bales of South 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

© Scoop Media