NZ wool prices advance on lower kiwi, increased demand

Friday 8th April 2016

New Zealand wool prices advanced at this week's auction as a lower kiwi dollar and increased competition for specific fibres bolstered demand.

Strong wool of 39 microns rose to $5.75 per kilogram at yesterday's South Island auction, from $5.70/kg at last week's North Island auction, according to AgriHQ. Strong wool, which makes up the majority of New Zealand's production, is trading about 14 percent higher than at the same time last year.

Lamb wool of 30 microns gained to $6.40/kg from $6.10/kg last week, as demand increased for coarser lamb wool with the general indicator price for the fibre lagging behind at $6.24/kg, AgriHQ said.

The auction clearance rate rose to 91.6 percent, from 86 percent at last week's North Island auction, and 81 percent at the previous week's South Island auction.

There was strong competition for wool types that met buyers’ contract requirements, although wool types that didn't meet buyers’ contract specifications traded at a discount, said AgriHQ analyst Shaye Lee. Buyers were generally looking for finer wool with less contaminants, like seed, on the fleece, she said.

The slightly weakened New Zealand dollar against the US dollar also added some positivity to the market, she said.

(BusinessDesk)

BusinessDesk.co.nz

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