NZ wool market improves at weekly auction on increased Chinese buying

Friday 25th August 2017

New Zealand wool prices and sale clearance rates continued to improve at the latest weekly auction, as buying interest picked up from China, the largest buyer of the fibre.

Some 91 percent of the 7,241 wool bales offered at yesterday's North Island auction were sold, and prices lifted for most styles of wool on offer with the coarse crossbred wool indicator up 4 cents to $2.86 a kilogram, AgriHQ said.

The New Zealand wool market is showing signs of picking up this season after coarse wool prices slumped last season when China switched its preference to fine wool and away from strong wool that makes up the majority of the country's clip.

"The wool market improved further at this week’s North Island sale - both prices and the clearance rate was up further, and it looks as though the market has stabilized," said AgriHQ analyst Sam Laurenson. "The lift in the current market conditions is currently been driven by increased buying from China. There is no clear indication that the market will continue to trend upwards."

AgriHQ's Laurenson noted that since the last North Island sale two weeks ago prices were up for the majority of the wool types on offer.

Crossbred second-shear wool was up across a range of styles, with the long styled 37-micron crossbred wool up 10 cents to $2.65/kg and shorter styles up to 15 cents to $2.55/kg. Meanwhile, 30-micron lamb wool held steady at $3.10/kg.

Some 11,800 bales are expected to be on offer at next week's auction.

(BusinessDesk)

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