Local wool prices rise on the back of weaker kiwi dollar at South Island wool sale - 29 October 2009

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 4.3 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.