Prices decline at NZ weekly wool auction amid weak demand

Thursday 13th April 2017

Prices fell at the latest New Zealand weekly wool auction as demand remained weak.

The average price for 35-micron crossbred fleece at yesterday's North Island auction fell 30 cents to $3.85 a kilogram from last week's South Island sale, according to AgriHQ. Finer 30-micron lamb wool dropped 45 cents to $3.65/kg.

New Zealand is the world's largest exporter of crossbred wool and weak demand for the fibre, which makes up about 80 percent of the national clip, has weighed on prices this season. The Ministry for Primary Industries noted in its latest quarterly outlook published this month that wool export prices may remain subdued until inventory is worked through and demand from China returns.

"Demand remains low due to uncertainty around the market in coming weeks," said AgriHQ analyst Sam Laurenson.

Some 71 percent of the 6,500 wool bales offered at the auction yesterday were sold. That's ahead of last week's 46 percent clearance rate, which was the lowest level since June 2009, although remains below the season-to-date clearance rate of 75 percent, AgriHQ said.

An estimated 10,600 bales are scheduled to be offered at next week's South Island wool auction.

(BusinessDesk)

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