N Is. wool market pays no heed to stronger dollar

News release – North Island wool market pays no heed to stronger dollar

New Zealand Wool Services International Ltd reports that prices at today’s wool sale in Napier rose across the board compared to the previous North Island wool auction, defying a stronger New Zealand dollar.

Since the previous South Island sale on 3 September, the New Zealand dollar has strengthened by 2.67 per cent against a weighted indicator of the main wool trading currencies.

Of 10,200 bales on offer today, 70 per cent sold.

According to New Zealand Wool Services International, cancellation of this week’s South Island sale, rostered for approximately 8,000 bales, may have added impetus to the market, particularly with only an additional 2,500 bales coming forward for next week’s South Island sale.

Compared to the last North Island sale on 27 August, strong demand lifted the finer end of the hogget wools by up to 10 per cent, bringing them into line with last week’s South Island prices. Coarser hogget wools between 33 and 35 micron were firm to four per cent dearer than the previous North Island sale.

A small offering of good colour coarse fleece was up to 1.5 per cent dearer, with prices for a very limited poor colour selection increasing up to 2.5 per cent. Longer coarse shears rose between 1.5 and 2.5 per cent, with the previously neglected shorter shears gaining between two and four per cent.

Long oddments continue to be in strong demand, increasing six to eight per cent, with the very short oddments five to six per cent dearer than their previous North Island offering, making prices for these types now also comparable to South Island levels.

Buyer interest at today’s Napier sale was strongest from Australasian carpet mills. Support came from Western European markets, India and China.

Next week’s wool auction, on 17 September, will be of South Island wool, in Christchurch, offering approximately 14,000 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.

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.

Attached table

Tables covering indicators and prices for key wool types from this week's sale.

Sale – table (xls)

ENDS

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