Wool sales get murky with bad weather

10 Jun '10

2 min read

Adverse weather conditions have reduced the wool supplies, creating difficult times for farmers to take advantage of the New Zealand currency fall against the US dollar.

According to Dave Studholme, of leading wool brokerage, Wool Partners International, although the forecast is likely to change, but still, owing to stagnant water around the woolsheds, people will not be able to reach them.

So as to store up enough for the next week, Wool Partners has annulled both its North and South Island wool auctions this week. Currently, in South Island it only has less than 50 percent of the regular supply.

Also the company's South Island auction manager, Studholme informed that, due to filthy conditions of the woolsheds, it was difficult for them to bring wool stocks in a the trimmed condition. More so, if water continues to remain constant around the woolsheds, cancellations of the June 24 auction may also take place.

In the North Island too, wool bales are less. From the regular 4,000 bales on offer for each week for auctions, Wool Partners currently had 2,500 in North Island.

In a normal scenario, wool farmers are supposed to be carrying on with their second shearing, but such delays due to weather, are likely to also have an adverse impact on the export orders. Subsequently, the market's been strong too, despite price fluctuations in the exchange rate.

According to Wool Services International that handles one-third of the country's exports, slack in the exchange rate against the US dollar, has triggered an outbreak of inquiries, but the weather continues to put pressure on supplies.

Fibre2Fashion News Desk - India