Strong Dollar Lowers Wool Prices

New Zealand Wool Services International Limited’s Marketing Executive, Mr Paul Steel reports that the 7,800 bales of North Island wool on offer this week saw a 92 percent clearance with a firm market for the finer Crossbred wools and lower levels for the Coarser sector.

The weighted indicator for the main trading currencies was 1.63 percent stronger than the last sale on 6th December which accounted for the lower levels however in foreign currency terms the market was generally very firm.

Continued demand for quick shipment from the Chinese market kept the finer types under steady pressure, with the seasonally higher volumes of coarser types due on the market and stronger currency combining to impact on this sector.

Mr Steel advises that fine Crossbred Fleece and longer shears were firm with shorter types 1 to 2 percent easier. Full length Coarse Crossbred Fleece was firm to 1.5 percent softer.

Coarse Shears were generally 1 to 2.5 percent cheaper with the shorter end affected the most.

Long oddments came under solid demand, lifting up to 4 percent. The shorter types ranged from 1.5 to 4 percent cheaper.

China principal, supported by India, Western Europe, United Kingdom and Australasia.

Next sale on Wednesday 19th December comprises approximately 8,200 bales from the North Island and 9,800 bales from the South Island.