27 Nov 2009

Weaker dollar hits South Island wool prices

6:03 am on 27 November 2009

Wool prices fell back at Thursday's South Island auction after a recent surge.

New Zealand Wool Services International reports that since the previous sale a week ago, the dollar has weakened by more than 2%.

That effect was partly negated, however, by - among other things - a fall in demand for urgent shipping requirements, which helped to push prices down.

Of the 8,500 bales on offer, 84% sold, with main buyer interest coming from China, India and the Australasian carpet mills.

On the whole, returns were slightly lower than at last week's sale, although a small offering of merino fleece rose by up to 6% and mid-micron fleece by 2.5%.

Fine crossbred fleece and shears eased by more than 2%, with coarse full carpet-type fleece up to 3% cheaper. Prices for good-style longer coarse shears fell 2% and average styles by up to 6%.

Combing oddments were up to 2.5% cheaper and short poorer-style oddments up to 5% cheaper.

Next week's wool sale, with more than 12,000 bales of North Island wool on offer, will be held in Napier.