Wool market firms in spite of stronger dollar

New Zealand Wool Services International Ltd reports that prices firmed at today’s wool sale, despite a rising New Zealand dollar over the last week.

Of the 7800 bales on offer at the auction of South Island wool, 86 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, the impact of a resurgent New Zealand dollar was negligible as short supply combined with steady demand to drive prices up.

“Compared to last week’s sale on 25 August, the dollar rose 2.93 per cent against the weighted indicator for the main wool trading currencies. However, this potentially negative factor had practically no impact on a market that is under the influence of demand and supply.

“A small volume of merino fleece on offer today was up to 1.5 per cent dearer than prices for the nominal offering at the previous sale.

“While mid micron fleece finer than 26 micron again strengthened in price, rising by up to two per cent, the 27 to 30 micron group ranged from firm to two per cent easier. Meanwhile, prices for 30 to 31.5 micron fleece rose between 1.5 and three per cent.

“Fine crossbred fleece and shears were firm to 1.5 per cent dearer. Coarse crossbred fleece remained firm, as did the shears, except the 2/4 inch group, which eased by up to 2.5 per cent.

“Coarse oddments ranged from firm to one per cent easier,” he said.

Competition today was well spread, with Australasia and China taking leading roles, while Western Europe, India and the Middle East provided support.

Next week’s sale, scheduled to offer 9,800 bales of North Island wool, is on 8 September.

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