INDEPENDENT NEWS

Weaker currency pushes wool prices up

Published: Thu 9 Oct 2008 03:48 PM
Weaker currency pushes wool prices up
New Zealand Wool Services International Ltd reports prices at today’s auction of approximately 10,000 bales of North Island wool, in Napier, saw prices rise between two and four per cent, capturing around half the value of the weaker New Zealand dollar.
Against a weighted currency indicator, taking into account the percentage of wool exported in the main trading currencies of United States dollars, Australian dollars, sterling and Euro, the New Zealand dollar has dropped 8.2 per cent since the previous sale on 2 October.
During that time, the New Zealand dollar has lost between eight and ten per cent against the United States, British and European currencies, while strengthening 7.5 per cent against the Australian dollar.
According to New Zealand Wool Services International, the failure of wool to fully capitalise on the weaker New Zealand dollar reflects ongoing worldwide fiscal woes, which are causing general business unease and stagnation.
At today’s sale in Napier, fine crossbred and hogget wools appreciated between four and six per cent, with the early shorn types gaining the most due to limited recent Chinese inquiry.
Good style coarse carpet fleece and shears strengthened two to three per cent, but poorer styles were neglected, their values dropping two to three per cent.
Oddments also struggled to find buyers, with most types unable to maintain last week’s level.
Next week’s sale of South Island wool is on 16 October, in Christchurch, offering a total of 12,700 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
Note to editor:
The full and detailed version of the New Zealand Wool Services International New Zealand Wool Report is taken by various national and international corporations, exchanges and agencies, including NZX, Reuters, the UK Wool Report, Meat and Wool New Zealand, Australian Wool Exchange and various others including bank economists and analysts.

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