Dollar Dumps On Wool

Dollar Dumps On Wool

New Zealand Wool Services International Ltd’s General Manager, Mr John Dawson reports that the rising NZ Dollar being toyed with on the international currency market is driving local wool values down.

The combined North and South Island wool auction comprising 18,900 bales saw a 73 percent clearance and apart for some types with limited volumes the market was continuing to trend downwards.

Mr Dawson advises the weighted indicator for the main trading currencies was up 1.69 percent compared to the last sale on 26th January and particularly strong against the USD and EURO.

A small selection of Mid Micron and Fine Crossbred Fleece resisted the negative impact of the currency increasing by 1 to 2 percent.

Fine Crossbred Shears received mixed attention, with the South Island easing by 1 to 2.5 percent and the North remaining firm to 3 percent stronger, although the North values are still below similar types in the South.

A similar scenario arose for the Coarse Crossbred Fleece with the South easing by 2 to 3 percent and the North increasing 1 to 2.5 percent, however, again the North’s values are still lower than the South’s.

Coarse Shears generally weakened 1 to 5 percent with the shorter and poorer wools affected the most.

First Lambs 2/3 inch and longer were firm to 4 percent dearer, with shorter types 2 percent cheaper.

A limited Oddment offering was 1 to 3 percent easier.

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

Next sale on 9th February comprises approximately 10,900 bales from the North Island and 8,900 bales from the South Island.

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