Wool market immune to stronger currency

Wool market immune to stronger currency

New Zealand Wool Services International Ltd reports recent price increases continued their momentum at today’s wool sales, in spite of further upward movement in the value of the New Zealand dollar.

In the combined auction of North and South Island wool in Napier and Christchurch, 74 per cent of approximately 13,000 bales on offer sold, with the balance passed in after many growers set high reserve prices.

Since the previous sale, on 29 April, the New Zealand dollar has increased by 1.23 per cent against the weighted indicator of the main international wool trading currencies. However, strong demand today stimulated prices to negate the currency factor.

According to New Zealand Wool Services International, a limited offering of mid micron wools gained in price between two and 3.5 per cent, while the fine crossbred wool sector rose one per cent.

Good style coarse fleece remained firm, with average styles ranging from firm to two per cent easier. Poor style fleece continued to gain, lifting by up to 1.5 per cent.

Coarse shears were sought after, with prices generally up between one and two per cent. Lambs’ fleece, an exception to the prevailing trend for most other types, failed to withstand the stronger currency with prices easing between one and two per cent. Oddments generally remained firm.

Today’s sale attracted good competition from buyers, with Australasian carpet mills, China and the Middle East taking the leading roles. Buyers from Western Europe, the United Kingdom and Asia provided support.

Next week’s auction, on 13 May, will be in Christchurch, consisting of 5000 bales of South Island wool and 1600 bales from the North Island, which is 3000 bales below the anticipated roster quantity.

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

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