Wool prices mixed amid larger volumes, weaker currency
The price for clean 35-micron wool edged up to an average $5.87 per kilogram at Thursday's wool auctions.
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New Zealand wool prices were mixed at the latest weekly auctions as larger volumes during a seasonal peak offset some of the benefits of a weaker currency.
The price for clean 35-micron wool, a benchmark for crossbred wool used for carpets and accounting for the majority of New Zealand's production, edged up to an average $5.87 per kilogram at Thursday's wool auctions, ahead of $5.80/kg at auction the previous week, and 15 % up on the same time last year, according to AgriHQ. Meanwhile, lambs’ wool held steady at $7.30/kg, 22% ahead of this time last year.
A weaker New Zealand dollar, which has shed 2.8% on a trade-weighted basis so far this year, has helped underpin wool export prices by making the fibre cheaper for overseas buyers. However, wool production is currently at its peak during the main shearing season from December to early February, with the higher volumes offsetting some of the gains. Last week's combined North and South Island auction saw a total of 16,536 bales of wool on offer, the biggest auction volume for the season so far.
"There was good local and international demand which saw 95.6 % of bales sold," said AgriHQ analyst Emma Dent. "There were a variety of price movements, with some wool types increasing due to currency factors while others decreased due to larger volumes."
Next week's North Island auction consists of roughly 7600 bales.
The value of New Zealand wool exports rose 9.9 % to $814 million in the 12 months to the end of November, making it the country's 14th largest commodity export, according to the latest Statistics NZ data.
(BusinessDesk)
Tina Morrison
Mon, 18 Jan 2016
Mon, 18 Jan 2016
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Wool prices mixed amid larger volumes, weaker currency
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