Falling dollar, strong demand lifts wool prices

An easing dollar boosted wool prices at last week's combined auction of 15,760 bales of North and South Island wool.

New Zealand Wool Services International manager John Dawson said gains in the wool market were aided by a weaker New Zealand dollar.

Solid competition resulted in 98% of the wool on offer being sold. Mr Dawson said strong demand continued to underpin the market, with the falling New Zealand dollar adding to the stronger prices.

Mid-micron and finer crossbreds gained between 2% and 6%, longer fine crossbred shears benefited from strong Chinese interest, lifting between 3.5% and 11%. Shorter types increased only in proportion to the currency movement.

Good colour coarse crossbred fleece rose between 2% and 5% and poorer styles between 1.5% and 2%. Coarse early-shorn and second-shear wools lifted between 1% and 4%, with longer wool increasing the most.

First lamb's wool, especially finer types, attracted strong contest, increasing between 2% and 12%.

Oddments also increased, rising between 3% and 13%.

Wool Partners International head auctioneer Dave Burridge said buyers commented that they would like to see prices consolidate.

A concern was the ability of exporters to fund their purchasers given the tighter bank criteria.

About 9500 bales from the North Island and 10,100 bales of South Island wool will be offered on Thursday.

 

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