October 8, 2010
Wool prices in New Zealand (NZ) recorded a 14-year-high growth in the midst of renewed demand for the fiber in Europe and the Middle East. The hike in demand also led to the rise in the prices of raw materials in the month of September.
The index of wool prices recorded a rise of 2.9 percent to 274 points. This was the first growth in a period of four months. Currently, the index is within one percentage point of its all-time high that was recorded in May.
While prices are high, supply shortages have caused the cancellation of two wool sales in NZ. Poor weather has disrupted shearing adding to the wool shortages, which have reinforced the steady lift in prices.
In Australia, the wool market continues to buck the trend of export commodities dipping as the dollar rises. The Aussie dollar reached its highest value since 2008, when it passed 97US cents last week.
But Michael De Kleuver, Victorian wool manager for Rodwells Brokers, says as the currency has risen, the wool market has followed. Last week was a very positive week on the wool market with rises of about 15 cents across the board.