North Island wool prices resist stronger dollar

News release – North Island wool prices resist stronger dollar

New Zealand Wool Services International Ltd reports that prices at today’s sale of North Island wool in Napier generally stood firm against the stronger New Zealand dollar, with price increases in some categories.

Since the previous South Island sale on 20 August the New Zealand dollar has strengthened by 1.18 per cent against a weighted indicator of the main wool trading currencies.

Of 16,100 bales on offer today, 70 per cent sold.

According to New Zealand Wool Services International, a nominal offering of fine crossbred wools 32 to 35 micron were firm to 1.5 per cent down.

Average style and better coarse carpet type fleece wool ranged, from firm to two per cent down, while the poorer styles strengthened by up to one per cent

Good colour coarse second shears 2/4 inches and longer remained fully firm, with the poorer styles increasing between 3.5 and five per cent. Shears 2/3 inches and shorter were neglected, falling four to five per cent. Prices for most shear types are still well below what was paid at the last South Island wool sale last week.

All oddment types were six to 14 per cent dearer, but are similarly still below South Island prices.

Buyer interest was strongest from Australasian carpet mills, which dominated the shear types. Support came from Western European markets, India and China.

Next week’s wool auction, on 3 September, will be of South Island wool, in Christchurch, offering approximately 17,000 bales, including a high volume of re-offered wools passed in at previous auctions.

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-

Attached table

Please find attached tables covering indicators and prices for key wool types from this week's sale.
sale27.08.09.xls

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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