NZ dollar rise puts further pressure on wool prices

A rise in the New Zealand dollar placed further pressure to hold previous sale levels at yesterday's South Island wool sale.

While good-style crossbred fleece drew good inquiry, there was resistance for shorter second-shear fleece and lambs wool, Dave Burridge, of PGG Wrightson Wool, said.

Roger Fuller, of CP Wool, said the offering was mainly made up of reoffered wool, recent poor weather having delayed shearing in many areas.

There was restricted competition with Australasia, the Middle East and Western Europe most active, supported by the United Kingdom, India and China.

Westpac's latest Agri Update said wool prices were likely to remain under pressure in the coming months due to low oil prices making synthetic alternatives more attractive, and a soft demand outlook from China.

Local supplies start their seasonal decline in the next few months, which would support short-term prices, the report said.

A range of prices. -J and H Willocks (Otago), eight bales Romney AA, 37.7 micron, 75% yield, 437 greasy, 583 clean; G R Farming (Otago), 38 bales crossbred AA, 36.7 micron, 78.3% yield, 459 greasy, 586 clean; McKenzie Farming (Otago), 17 bales Romney 2-tooth, 38.4 micron, 79.7% yield, 466 greasy, 585 clean; Jones Family (Otago), eight bales Romney second-shear, 37.5 micron, 85.8% yield, 498 greasy, 580 clean; Berriedale Partnership (Outram), 13 bales crossbred AA, 34.7 micron, 78% yield, 463 greasy, 594 clean; Estate E T Beattie and Son (Outram), 20 bales Perendale hogget AA, 31 micron, 83.2% yield, 592 greasy, 712 clean; Hummock Run Ltd (Waikouaiti), crossbred early-shorn hogget AA, 31.3 micron, 79.6% yield, 534 greasy, 671 clean; Lawson Family (Waikouaiti), 23 bales crossbred second-shear AA, 37.6 micron, 82.9% yield, 493 greasy, 595 clean; Carterhope Estate (Balclutha), 55 bales Romney AA, 38.1 micron, 79.4% yield, 469 greasy, 591 clean.