Because of rising prices of wool, the overall commodity index in New Zealand has also gone up in October. This is the second consecutive month that the wool prices have increased. Rising demand for coarse fabrics in China has been the reason for this surge, said ANZ Commodity Price Index.

The indices went up by 3.5 per cent to close at 283.4 as the price of wool went up by 29 per cent, This is the 21-year high that these prices have touched as Chinese buyers restocked the supply for meeting carpet industry demand. During the same time, value of wool exports on New Zealand rose 17 per cent to be at $43 million during September.

What hurt this surge was the rising value of New Zealan'd dollar. The index for the currency went up by 0.8 per cent while it lost value in front of US dollar. Overall for the index as a whole, in all the 12 commodities that are covered, nine saw a surge in prices while the rest saw movement southwards. Price of skin was up 10 per cent while aluminium prices were up by 8 per cent.