Wool auction sees slight market correction

Wool auction sees slight market correction

New Zealand Wool Services International Ltd reports that wool prices eased slightly at today’s South Island wool auction, though a late rally indicates the market is finely balanced and highly responsive to currency shifts and variations in wool flow.

Today’s auction, in Christchurch, saw prices for most wool types ease as a slight correction to the market lift of last week.

Fine wools in the mid micron sector ignored the slightly softer rate of the New Zealand dollar against the United States dollar strengthening between one and 2.5 per cent.

For coarse wool types however, last week’s market pressure has eased and the current volatility of the New Zealand dollar has curbed interest, making it difficult to write new business.

With this softening in demand the market for coarse wools has corrected by between one and two per cent, effectively reversing last week’s gains.

Next week’s South Island sale, to be held in Christchurch on 6 September, comprises 12,600 bales, including a small offering of this season’s merino wools.

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-

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