Strong Dollar Softens Wool
STRONG DOLLAR SOFTENS WOOL
New Zealand Wool Services International Limited’s Marketing Executive, Mr Malcolm Ching reports that a rapidly strengthening New Zealand dollar impacted on local wool levels for the 8,000 bales of North Island Wool on offer at auction this week. Due to the lower levels some grower reserves were not met with 78 percent selling.
Compared to last week, the weighted currency indicator increased 3.73 percent with the NZ to US dollar 4.40 percent stronger. In off-shore client terms the market in their currencies remains firm to dearer.
North Island price levels for the predominantly short second shear offering are again below the more varied selection from last weeks’ South Island auction.
Compared to the last comparative offering at the 26th May North Island auction, Mr Ching advises;
Fine Crossbred Early Shorn and Second Shears were 1 to 4 percent cheaper.
Coarse Crossbred Full Fleece were 3.5 percent cheaper for average style and 1 to 3 percent dearer for poor colour.
Coarse Shears were firm to 3 percent cheaper with bigger discounts for high seed content lines.
First Lambs were 4 to 6 percent cheaper.
Crossbred Oddments ranged from firm to 7 percent easier.
Limited competition with Australasia and Western Europe principals, supported by Middle East, United Kingdom and China sparingly.
Next sale on 16th June comprises a nominal offering of 4,100 bales from the South Island due to weather affected harvesting.