Wool prices rise on currency fluctuation

11 Aug '11

2 min read

There was a general increase in the prices of wool at the combined North and South Island wool auction on Thursday, mainly owing to a decline of 5.5 percent in the value of New Zealand dollar against other major trading currencies compared to the previous sale on August 4.

About 80.8 percent of the 10,565 bales on offer were sold at the auction. There was a good demand for full length wools that were well prepared. Also, there was a limited demand for North Island's good colour second shear.

Compared to the prices at last week's North Island sale, prices of second shear 34 to 36 micron, two to four inch, second shear 37 micron and coarser, three to four and two to four inch, and coarse crossbred early shorn increased 4.5 percent.

However, the prices of second shear 34 and 35 micron, three to four inch and fine crossbred early shorn witnessed the maximum increase of 6.5 percent.

Compared to the prices at last week's South Island sale, prices of fine crossbred wools, fine crossbred early shorn and second shear three to four inch and three to five inch, 33 to 35 micron, as also coarse crossbred 34 and 35 micron, four to six inch, rose between three and four percent.

Prices of good colour combing oddments, coarse crossbred 36, and coarse crossbred early shorn, coarser microns and second shear rose in between one and 2.5 percent. Maximum price rise of five percent was witnessed in clothing oddments.

Demand was visible as there were buyers from China, Western Europe, the United Kingdom and Australasia, while participation from India was limited.

At the next sale scheduled for August 18, nearly 7,000 bales of wool from the South Island and about 8,300 bales from the North Island are expected to be put for auction.

Fibre2fashion News Desk - India