Rising dollar drives wool prices down

New Zealand Wool Services International Ltd reports prices at today’s wool sale pulled back from their recent highs.

Of the 18,000 bales on offer at the combined auction of North and South Island wool, 65 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, compared to the last sales of South Island wool on 30 June and North Island wool on 7 July, the market has generally eased by between two and five per cent.

“Since the most recent sale on 7 July the New Zealand dollar has risen by 3.56 per cent against the weighted indicator for the main wool trading currencies, accounting for most of the market movement.

“Relative high volumes on the market at this time of year and limited overseas purchasing activity during the European holidays also had an impact on prices today.

“For the fine end of the mid micron types, fleece was up to three per cent cheaper, while the coarser end resisted the trend, rising by up to 1.5 per cent.

“Fine crossbred fleeces were between 3.5 and five per cent cheaper, with the shears ranging from firm to three per cent easier.

“A nominal offering of first lambs’ types was up to 2.5 per cent easier. Long oddments were firm to four per cent cheaper with short types ranging from firm to five per cent easier,” he said.

Competition at today’s sale was limited, with China, Australasia and India taking the principal roles, while buyers from the Middle East, Western Europe and the United Kingdom acted in support.

Scheduled at next week’s sale, on 28 July, are approximately 9,200 bales from the North Island and 4,300 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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