Wool price drop blamed on dollar

Prices for most styles of ewe and lambs' wool eased at last week's sale compared to the sale a week earlier, according to Wool Partners International auctioneer Dave Burridge.

Buyers competed strongly for the 18,700 bales, with 91% selling, but he said the higher New Zealand dollar had put extra pressure on the market when most wool exporters were trying to adjust to the new price levels.

Compared to the previous sale on March 31, good style crossbred fleece, 31 to 39 micron, fell 1% to 3% and poorer styles 3%.

Second-shear fleece fell 1% to 2%, new season lamb's eased 1% to 2% and crossbred oddments 2% to 4%.

A small volume of mid-micron and fine crossbred lamb's wool rose by 2%.

New Zealand Wool Services International general manager John Dawson attributed the price decline to New Zealand currency movement.

Buyers from China, India and Australasia dominated the competition, supported by the Middle East, Western Europe and the UK.

Next week's sale, on April 14, was 35% short of anticipated rostered amounts, offering about 1700 bales from the North Island and 6500 bales from the South Island.

 

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