Local wool prices rise on the back of weaker kiwi dollar at South Island sale
NZ Wool Services International Ltd reports prices at today’s South Island wool auction generally benefited from the
substantially weaker New Zealand dollar.
Since the previous sale on 22 October, the New Zealand dollar has dropped 43 per cent against a weighted index of the
main wool trading currencies.
Of today’s offering, comprising approximately 10,500 bales, 89 per cent sold.
According to New Zealand Wool Services International, a nominal offering of fine merino fleece was the sole exception,
falling by three to five per cent since the last offering on 15 October, in line with recent merino pricing levels on
the Australian market. All other types on sale today benefited from the currency factor.
Compared to the 15 October South Island sale, fine crossbred fleece was two to four per cent dearer, longer shears three
to six per cent dearer, and shorter shears 1.5 to 2.5 per cent dearer.
Coarse Crossbred fleece and shears gained between two and four per cent, with the small offering of poorer style wools
benefiting the most.
Oddments generally remained firm.
Competition at the auction was widespread, with the fine wool sector supported by China and Western Europe and the fine
crossbred sector drawing Asian attention. Carpet types were sought after by Australasian carpet mills, the Middle East
and India, also rallying support from Western European interests
Next week’s wool sale will be on 5 November, a reduced offering of approximately 6,500 bales of North Island wool in
Napier.
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