22 Jul 2011

Wool price rise stalls due to NZ dollar

5:37 am on 22 July 2011

The booming New Zealand dollar has halted a further lift in wool prices which dropped between 2.5% - 5% at the latest combined auction of North and South Island wool.

Wool Services International says that reflects the New Zealand dollar firming 3.5% over the past fortnight, against the weighted indicator for the main wool trading currencies.

General manager John Dawson says a combination of a relatively high volume of wool being offered, and a limited overseas demand from Britain and Continental Europe, due to summer school holidays, also had an impact on price.

Only 65% of the 18 thousand bales on offer, sold.

Fine crossbred fleece was between 3% - 5.5% cheaper, with shears dropping up to 3%.

Oddments ranged from being firm in price to 5% cheaper.

Most of the competition for the wool came from China, Australia and India.