21 Feb 2009

Wool price boosted by NZ dollar fall

10:09 am on 21 February 2009

A weaker New Zealand dollar helped to lift prices for most of the wool on offer at this week's North and South Island wool sales.

Since last week's sales the dollar fell by about 2.5% against the main wool trading currencies.

New Zealand Wool Services International, which monitors auction prices, says that contributed to a firmer market, and prices lifted by up 2.5%.

Prices for good-coloured well-grown fleece lifted by up to 2.5% as did finer first lambs' wool.

Early shorn and second shear wools made gains of up to 2%.

Almost 80% of the 15,800 bales up for auction were sold, which also reflected greater interest from buyers compared with sales earlier this year.

Demand at this week's sales came mainly from Australasian carpet mills, India, Western Europe and the Middle East, with support from China.