Thursday, 02 February 2012 15:47

Dollar dumps on wool

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The rising New Zealand dollar being toyed with on the international currency market is driving local wool values down, says New Zealand Wool Services International Ltd's general manager, John Dawson.

The combined North and South Island wool auction comprising 18,900 bales saw a 73% clearance and apart for some types with limited volumes the market was continuing to trend downwards.

Dawson advises the weighted indicator for the main trading currencies was up 1.69% compared to the last sale on January 26 and particularly strong against the USD and euro.

A small selection of Mid Micron and Fine Crossbred Fleece resisted the negative impact of the currency increasing by 1-2%.

Fine Crossbred Shears received mixed attention, with the South Island easing by 1-2.5% and the North remaining firm to 3% stronger, although the North values are still below similar types in the South.

A similar scenario arose for the Coarse Crossbred Fleece with the South easing by 2-3% and the North increasing 1-2.5% however; again the North's values are still lower than the South's.

Coarse Shears generally weakened 1-5 % with the shorter and poorer wools affected the most.

First Lambs 2/3 inch and longer were firm to 4% dearer, with shorter types 2% cheaper.

A limited Oddment offering was 1-3% easier.

Widespread competition with China, Australasia and Western Europe principals supported by India, Middle East and the United Kingdom.

The next sale on February 9 comprises about 10,900 bales from the North Island and 8,900 bales from the South Island.

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