19 Apr 2013

Wool prices soften

9:35 am on 19 April 2013

Wool prices softened again at this week's sale despite a more favourable exchange rate.

Prices at last week's South Island auction took a hit from a surging New Zealand dollar, which undermined export market returns.

Although the dollar has since weakened against the US currency, prices lost further ground at Thursday's auction of North Island wool.

The lower prices reflected weaker demand from main export market China and uncertainty in the local market stemming from the currency movement.

The exporter, New Zealand Wool Services International, reports fine cross-bred wool sold for up to 5% less than last week.

Coarse cross-bred offerings were 1.5% to 2% cheaper.

Lambs wool prices ranged from 3% lower to 1% higher.

Eight-six percent of the 7600 bales were sold.