Wool prices outshine appreciation in NZ dollar

15 Oct '10

2 min read

Crossbred wool prices have recorded a considerable increase with a mere 10 percent rise in sales at Napier and Christchurch. Wool exporters are assured that the increase in crossbred wool prices is supportable and this is expected to continue rising, even though there are prospects of its fluctuation down the course.

Crossbred wool prices have been rising slowly over the past 15 months. The wool prices have recorded a hike of over 50 percent more than the May 2009 market prices in terms of US dollars and are currently at a 14-year high. The real increase in prices has been registered during the past two to three months wherein, the prices have outshone the New Zealand dollar.

The enhancement in the wool prices in the global market has shrouded the rise in the value of New Zealand's currency. Even though the buyers have been paying more for the wool from New Zealand, the local wool producers as well as the exporters are not benefited from the rise in prices, especially in terms of cash which they receive.

A rapid rise in prices have been registered over some time and it has been for the first time over a period of several years that the wool prices have managed to overpower the rise in the value of New Zealand dollar.

Fibre2fashion News Desk-India