Strong dollar soften wool prices in New Zealand (New Zealand)

New Zealand Wool Services International Ltd reported the stronger NZ Dollar compared to the last sale on 26th July played a major part in the generally softer market this week. Of the 7,215 bales on offer 69 percent sold.

The weighted indicator for the main trading currencies strengthened by 2.14 percent Coupled with on-going sluggish demand at present the currency factor eased prices on the local market for most categories except for some of the fine wool types. Mid Micron Fleece 29 micron and finer were up to 1.5 percent easier however the 29.5 to 30.5 micron were 3 percent dearer. Fine Crossbred 33 and 34 micron attracted strong competition, increasing 8 to 11 percent. The 35 micron fleece was up to 3 percent cheaper.

Fine Crossbred Shears ranged from firm to 5 percent easier with the shorter types reducing the most. Good Colour Crossbred Fleece Coarser than 36 microns were 2.5 to 3.5 percent cheaper. Longer Shears were 1.5 to 2.5 percent easier with the 2 to 4 inch wools 2 to 4 percent down and the 2 to 3 inch firm, however when compared to the previous North Island levels where the bulk of this category is scoured, prices are par to 2.5 percent dearer. Long Lambs were 1 percent dearer with short types 2 to 4.5 percent stronger.

Long Oddments were firm to 1.5 percent cheaper however Short oddments increased 4 to 8 percent. Limited competition with China, India and the Middle East principal supported by Western Europe, United Kingdom and Australasia sparingly.