Wool Auction Prices Lifting Amid Dollar Volatility

Wool auction prices continue to lift amid currency volatility

New Zealand Wool Services International Ltd reports that prices at today’s North Island and South Island wool auctions continued upward trends from last week, further buoyed by restricted supply and wide spread buying interest.

Ongoing volatility in the New Zealand dollar has stimulated both local exporters and overseas purchasers to minimise their exposure, creating a more robust environment.

Over the past week, since the previous wool auction in Christchurch, the New Zealand dollar has moved over a six per cent range, but settled to levels comparatively similar to last week’s auction rate.

Mid micron fleece wools attracted strong interest, gaining in price between one and five per cent.

Hogget wools, which are currently in limited supply, appreciated between 1.5 and four per cent on the back of recent renewed interest from China.

Now at their peak seasonal volume, pre-lamb full fleece wools held the gains seen last week and generally remained firm. Second shear wools were keenly contested in both auctions, strengthening between one and three per cent, with premiums paid for well prepared lines of good character.

Again only those lines in the coarse types that contained higher seed content struggled to find buyers, and were discounted appropriately.

New Zealand Wool Services International advises that the recently reported short fall in import quota for China may be less significant than first assumed.

Next week’s wool auction, to be held in Christchurch on 30 August, comprises 10,550 bales.

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