Increasing demand leads to soaring wool prices

03 Apr '08

2 min read

New Zealand dollar has weakned in present times by one to two percent in comparison to other trading currencies, since the last wool auction held on March 27. However, this currency movement has not affected the wool price as there is strong demand in the market.

According to New Zealand Wool Services International Ltd, the wool sale held today in Christchurch, once again witnessed good prices being offered for all the categories.

The price of half bred wools saw a rise of nearly 3 to 4 percent. Hogget and cross bred wool experienced a boost of around 1.5 to 5 percent, the 3/5 inch wools gained the maximum benefit, as a result of keen intrest shown by Chinese buyers.

Crossbred full fleece of high quality strengthened nearly 2 to 3 percent, however, the prices of low quality remained stable.

The first lambs wool, saw a rise of approximately 2.5 to 6 percent and price of second shears went up by 2 to 5 percent, while Oddments remained stable to 2.5 percent.

New Zealand is the world's largest producer and exporter of crossbred wool, and experts believe that due to high quality and good prices offered, the increase or decrease in currency will not harm industry to a large extent.