Rural / Country

Dollar's dip helps lift wool prices

09:10 am on 4 September 2015

Bales of wool fetched strong prices at this week's North Island sale, helped by a lower New Zealand dollar and limited supply.

Almost all - 97 percent - of the 7500 bales at the auction sold.

The marketing executive of the country's biggest wool exporter, Malcom Ching of New Zealand Wool Services International, said apart from fine crossbred wool, which came down in price by between two and four percent, shorter types were in strong demand, up 4.5 percent.

Mr Ching said at this time of the year there was not a lot of shearing going on around New Zealand, which meant less wool for the market.

He said a range of factors were behind the lift in prices, including strong demand from China, Western Europe and Australasia.

"The exporters have perhaps oversold the amount of wool that's around," he said.

"The weather has impacted on what was anticipated to come forward at auctions, and there's just a little bit less than what everybody thought, so we have a slight supply demand imbalance.

"And we have the continuing weakening of the New Zealand dollar, particularly against the US dollar, which is aiding the local wool price."

Mr Ching said the results were stronger than expected.