Wool Prices Resume Upward Trajectory Despite Strong Currency

Wool Prices Resume Upward Trajectory Despite Stronger Currency

New Zealand Wool Services International Ltd reports that prices at today’s wool sale generally strengthened.

In an offering of 16,500 bales, 81.6 per cent sold, with prices for most types higher than the previous sale a fortnight ago, and fine wools subject to major gains.

Prices rose despite an unfavourable currency movement, with the weighted indicator for the main wool trading currencies firming by 1.21 per cent since the last sale on 12 May.

New Zealand Wool Services International general manager John Dawson said that the dearer market and appreciating currency affects overseas customers significantly, with substantial price lifts in their terms.

“Mid micron fleece attracted keen interest, in line with recent Australian price gains, lifting nine to 10.5 per cent since the last offering.

“Fine crossbred fleece and shears were between two and seven per cent stronger. Coarse crossbred fleece ranged from 1.5 per cent to 6.5 percent dearer, with the North Island poorer styles gaining the most. First lambs’ wools rose by one to four per cent.

“Combing oddments increased between two and eight per cent, with the short oddments attracting significantly differing interest as the South Island selection lifted 13 to 20 per cent, while the North Island price eased between one and two per cent,” he said.

According to John Dawson, competition at today’s auction was well spread. Australasia, China and Western Europe were to the fore, with support provided by and the Middle East, India and the United Kingdom.

Next week’s scheduled sale, on 2 June, has been cancelled due to insufficient wool being available. The next sale will therefore be on 9 June and is rostered to offer approximately 8,800 bales from the North Island and 7,000 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

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