22 Jun 2012

Strong dollar blamed for soft wool sales

6:27 am on 22 June 2012

A relatively-high exchange rate for the New Zealand dollar is being blamed for softer wool prices at this week's South Island sale.

New Zealand Wool Services International says the compared with last week's North Island auction, prices were generally firm to 4% lower.

Shorter-length fine crossbred shears bucked the trend and sold for up to 4% more.

But WSI general manager John Dawson says it's becoming increasingly difficult to compare weekly price movements because of big difference in volumes, wool types and price ranges between the alternating North and South Island sales.

Bidding was limited, with only 65% of the bales on offer were sold.