12 Mar 2010

Stronger dollar erodes wool prices

8:37 pm on 12 March 2010

A stronger dollar helped to pull down prices at this week's North and South Island wool sales.

The New Zealand dollar rose by more than 1% against the main wool trading currencies.

Wool Services International says the higher dollar combined with finely balanced supply and demand and limited shipping space meant buying activity and prices fell for most of the wools on offer.

Fine crossbred wools, bought mainly for the Chinese market, were up to 2% cheaper.

Coarse crossbred fleeces eased by 2% - 3%.

Finer lambs wool prices dropped by up to 3.5%, apart from longer, coarser lines that fetched up to 5% more.

Of the 29,000 bales for auction, 78% sold.