Wool prices fallon strong dollar

Wool prices softened on the back of a stronger New Zealand dollar and subdued demand at this week's combined North and South Island wool sale.

Prices for all styles of wool were cheaper than at the last sale two weeks ago. The increase of the New Zealand dollar against the United States dollar had tipped the balance of prices, with buyers commenting they were unable to absorb the higher currency costs and maintain recent price levels, Wool Partners International auctioneer Dave Burridge said.

Of the 18,600 bales on offer, 62% sold, New Zealand Wool Services International general manager John Dawson said.

A small selection of end-of-season mid-micron fleece was generally down 3%, while fine crossbred fleece and shears were down 4%-5%. Coarse crossbred fleece was also down 4%-5% but poorer-styled wools, which were in limited supply, dropped only 1%-2.5%, while coarse shears were 3%-6% cheaper.

Buyers came from Australia, New Zealand, Western Europe and the Middle East, with support from the United Kingdom, China and India.

 

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