NZ wool prices gain at auction as buyers favour wider South Island selection

Friday 29th July 2016

New Zealand wool prices gained at yesterday's South Island auction on increased demand and a wide selection of wool on offer.

Prices increased across a broad range of wool types, led by mid-micron wool with the indicator price showing a 9 percent premium on the previous auction, AgriHQ said. Some 85 percent of the 7,700 bales on offer were sold at auction, the highest clearance rate since the end of May.

The country's weekly wool auctions generally alternate between the North and South islands, and South Island auctions currently have more varied wool types on offer compared with the North where the majority of wool offered is strong crossbred second shear, said AgriHQ analyst Shaye Lee.

The selection at auction yesterday ranged from 21 micron merino wool to 42 micron coarse wool with a cross section of styles and lengths which provided attractive options to buyers and overriding the possible negative impact of a stronger kiwi dollar compared to the previous South Island auction on July 14, according to New Zealand Wool Services International.

BusinessDesk.co.nz

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