Strong Dollar Lowers Wool Prices

Strong Dollar Lowers Wool Prices

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the combined North and South Island auction this week offering 25,000 bales saw pries ease on the back of a considerably stronger NZ dollar. The weighted indicator for the main trading currencies compared to the last sale on 21st December 2011 was 4.45 percent higher, however many categories resisted this negative factor with local prices in many instances only easing by 1.5 to 4 percent. There was a 69 percent clearance of all wools on offer. The South Island which only had 9,000 bales on offer resisted the strong dollar the most only softening by 1.5 to 3 percent. The larger volumes of North Island wool saw prices ease further.

Mr Dawson reports that a very small offering of Mid Micron wools resisted the trend and rose between 1.5 to 2.5 percent. Fine Crossbred Fleece and shears eased between 1 and 3 percent. Coarse Crossbred Fleece was 2 to 4 percent weaker with shears firm to 5 percent down.

Early season short lambs weakened between 3 and 7 percent with very little overseas interest at present.

Oddments were also back by 6 to 9 percent with the Indian market very quiet at present.

Australasia and China were principal markets supported by Western Europe, Middle East, United Kingdom and India.

Next sale on 19th January comprises approximately 9,800 bales from the North Island and 6,300 bales from the South Island.

ENDS

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