Weaker exchange rates help wool prices

New Zealand Wool Services International Ltd reports that prices generally increased at today’s wool sale, largely due to a drop in the New Zealand dollar against other trading currencies.

Of the 10,565 bales on offer at the combined auction of North and South Island wool, 80.8 per cent sold and price rises of between 1.5 and three per cent were recorded.

According to New Zealand Wool Services International general manager John Dawson, today’s gains were mainly due to currency fluctuation and a limited increase in demand.

“Exporters were bidding today on wools that were well prepared and mainly full length, with a limited offering of good colour second shear from the North Island.

“Compared to last week’s sale on 4 August, the New Zealand dollar has fallen by 5.5 per cent against the weighted indicator for the main wool trading currencies.

“Since last week’s South Island sale, fine crossbred wools, which were limited, have gained in price by three per cent. Fine crossbred early shorn and second shear three to five inch and three to four inch, 33 to 35 micron, rose in price between three and four per cent.

“Coarse crossbred 34 and 35 micron, four to six inch increased by three per cent, while 36 and coarser microns were up to onc per cent dearer.

“Coarse crossbred early shorn and second shear rose in price between one and 2.5 per cent.

“Strong demand was also in evidence on good colour combing oddments, which increased in price by one per cent, while clothing oddments gained fully five per cent.

“Compared to last week’s North Island sale, fine crossbred early shorn and second shear 34 and 35 micron, three to four inch increased in price by 6.5 per cent, while 34 to 36 micron, two to four inch gained in price by 4.5 per cent.

“Coarse crossbred early shorn and second shear 37 micron and coarser, three to four and two to four inch increased in price by of 4.5 per cent,” he said.

Buyers from Australasia, China, Western Europe and the United Kingdom were responsible for most action at the sale today, while demand from India was limited.

Scheduled at next week’s sale, on 18 August, are approximately 8,300 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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