Resurgent NZ Dollar Has Little Impact on Wool Market

Resurgent NZ Dollar Has Little Impact on Wool Market

New Zealand Wool Services International’s General Manager, Mr John Dawson reports that this week’s wool auction in Christchurch held up extremely well against a NZ dollar which strengthened dramatically since the last sale on 24th November.

Of the 7,350 bales on offer 89.6 percent sold. The weighted indicator for the main trading currencies increased by 4.6 percent, however the local market generally eased only around 1.5 percent on the back of strong competition.

Mr Dawson advises that compared to the last time sold on 17th November, Merino Fleece 22.5 micron and finer was 1.5 to 8 percent cheaper, however 23 and 24 micron rose by 3 to 5 percent.

Mid Micron Fleece 24.5 to 26 micron were up to 1 percent easier with 26.5 to 30 micron between 1 and 6 percent stronger. 30.5 to 31.5 micron eased by up to 2 percent.

Compared to the North Island sale on 24th November, Fine Crossbred Fleece and Shears softened slightly between 1.5 and 2 percent. Coarse Crossbred Fleece of Good and Average style were 1.5 percent cheaper with the poorer styles 3 percent easier. Coarse Early Shorn and Second Shear 3/5 and 3/4 inches were 1 percent softer with 2/4 and 2/3 inch up to 4.5 percent stronger. Combing oddments were 2 to 4 percent weaker with the short types only 1 percent cheaper.

Wide spread competition with Australasia, China and Western Europe principals, supported by the Middle East, India and United Kingdom.

Next sale on 8th December comprises approximately 10,500 bales of North Island wool.

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