Friday, 08 July 2016 07:55

Global uncertainty affects wool market

Written by 

The ongoing fallout from the Brexit result, continued minimal activity from China and a strong New Zealand dollar have compounded to make significant inroads into local wool values.

New Zealand Wool Services International chief executive John Dawson reports the weighted currency indicator compared to last sale lifted 0.66%, however against the GBP the New Zealand dollar strengthened a further 4.4% making a shift of over 13% since the Brexit announcement.

Market sentiment is bearish as many clients take a cautious approach during this unsettled period.

Of the 7500 bales on offer, only 54% sold as buyers become very selective, only covering immediate requirements.

Dawson advises that compared to last sale on June 30:

• Fine crossbred shears were 7 to 10% cheaper.

• A nominal selection of average style coarse full length fleece were 1 to 2% easier with poor style 9% cheaper.

• Coarse early shorn and second shears which made up 62% of the offering were 5.5 to 10% cheaper, with the shorter wools affected the most.

• Coarse Oddments were 3 to 7% easier.

Activity was restricted with exporters only covering requirements for prompt shipment mainly for Australasia and the Middle East, with limited activity for Western Europe, China and India.

Next sale on July 14 comprises about 5600 bales from the South Island, down on anticipated roster due to poor weather.

More like this

Facial eczema – the hidden killer

Most of the damage caused by facial eczema (FE) is subclinical (no obvious external signs) and goes unnoticed until it’s too late, comments Agritrade.

Featured

 

Keeping your farm protected

Biosecurity isn't just about border control at the airport or ports, writes Nita Harding, DairyNZ technical policy advisor.

» Latest Print Issues Online

The Hound

Appropriate

Your canine crusader reckons it is ironic – and highly appropriate – that Shane Jones’ $3 billion electoral slush fund…

Funny names

Over the years, a mate of the Hound’s has always been quick to point out to him people in roles…

Popular Reads

Rural Life

Mechanisation new for the US

The impetus behind developing the Klima stripper back in 2007 was a continual lack of labour during the pruning season.