New Zealand wool prices decline on rising currency

22 Jul '11

2 min read

The prices of New Zealand wool have declined from their recent hikes. At the joint auction of North and South Island wool on July 21, about 65 percent of the nearly 18,000 bales on offer were sold.

The prices saw a decline of two to five percent since the last auction of South Island wool held on June 30, and the sales of North Island wool held a week later.

A factor that impacted the price was the 3.56 percent rise in the value of New Zealand dollar during the past fortnight, against the major wool trading currencies.

Limited overseas buying, owing to holidays in Europe, and comparatively high volumes of supply in the market than is normal at this time of the year, were among the other factors that pushed the prices downwards.

However, the fleece for the coarser end of the mid micron types withstood the declining trend and its price closed 1.5 percent higher.

Price of fleece for the fine end of the mid micron types decreased by three percent compared to earlier auction sales. While the price of fine crossbred fleeces were 3.5 to 5 percent down, the price of shears went down between zero and three percent.

Long oddments were available at rates which were about four percent lower compared to the previous sale, while short varieties were down by about five percent. The price of a usual offering of first lambs' types also decreased by up to 2.5 percent.

The principal buyers were from China, India and Australasia. There were also few buyers from the United Kingdom, Western Europe and the Middle East.

The next auction sale is scheduled for July 28, where around 4,300 bales of South Island wool and 9,200 bales of North Island wool are expected to arrive.

Fibre2fashion News Desk - India