Wool prices strengthen as domestic currency takes a dip

31 Jul '08

2 min read

Prices of almost all the variety of wool strengthened between two and five percent at today's auction.

A total of 23,000 bales of North and South Island wool were put up for sale in Napier and Christchurch and prices for the same rose considerably largely due to firming of US dollar which pulled down New Zealand dollar by 5 percent since the last sale on July 17.

According to New Zealand Wool Service International, demand for mid micron wool was the strongest which was reflected in prices that rose between five and seven percent due to stiff competition from European processors.

Finer crossbred fleece and hogget wools rose between three and four percent, with South Island types attracting the most amount of attention. Besides, good colored coarse crossbred pre-lamb shorn sound fleece also witnessed prices firming by three to five percent with average styles receiving favorable response.

Again, second shears, lamb fleece and oddiments appreciated between two and five percent with demand rising for longer and better style types.

However, shearing activity has been distrupted in many areas of the country due to adverse weather conditions and a reduction in live stock have in turn affected a steady flow of wool. As a result, the auction scheduled for August 7 had to be annulled in the same way as the previous auction sales that were supposed to be held on July 24 had to be cancelled.

The auction, comprising some 7,000 bales would take place now only on August 14 in Christchurch.