Mixed reaction to weaker dollar at S Is wool sale

News release – Mixed reaction to weaker dollar at South Island wool sale

NZ Wool Services International Ltd reports that supply and demand factors offset the advantage of a slightly weaker dollar at today’s South Island wool auction.

Since the previous sale on 27 August, the New Zealand dollar eased by one per cent against a weighted index of the main wool trading currencies.

Today’s offering contained a wide range of types consisting of approximately 15,600 bales, 80 per cent of which sold.

According to New Zealand Wool Services International, compared to yesterday’s Australian market, a small selection of new season merino wools saw the 18 micron and finer firm to slightly dearer, the 19 and 19.5 micron fleece fall by up to three per cent and the 21 to 22.5 micron rise by up to 1.5 per cent.

Full length fine crossbred fleece wools were barely steady, with the finer end of the relative shears between one and three per cent cheaper and 34 to 35 micron up to 1.5 per cent dearer: movements that directly reflect current varied demand from China.

Better style coarse carpet fleece remained fully firm, with a limited offering of poor style fleece strongly contested, increasing by two per cent. Coarse shears 3/4 and longer rose by up to one per cent, while 2/4 inches dropped by two per cent. The very short shears were comparatively neglected, falling in price between five and seven per cent.

Combing oddments remain in strong demand, rising in price by two to three per cent. The 2/4 inch clothing oddments appreciated between seven and nine per cent, driven by regular Indian interest. However, demand for the 2/3 inch and shorter types was lower, with these types falling in price by up to 2.5 per cent.

Although shears and oddments fell in price today compared to their previous South Island appearance, local price levels are still considerably above last week’s North Island prices for comparative types.

Interest for the finer types at today’s sale was mainly from Western Europe and China. Buyers from Australasia, the Middle East, India and Europe were prominent in purchases of the coarser types.

Next week’s wool sale will be on 10 September, offering approximately 10,000 bales of North Island wool in Napier. The previously scheduled South Island sale in Christchurch is cancelled due to insufficient availability of wool.

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.

Attached table

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

Indicators and prices for key wool types - Table (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.

ENDS

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