NZ lamb wool rises to record high heading into new season amid strong Chinese demand

Friday 20th November 2015

New Zealand lamb wool prices jumped to a fresh record high heading into the new season amid strong demand from China.

Lamb wool climbed to $7.50 per kilogram at yesterday's South Island auction, beating the previous record price of $7.45/kg set in June this year, and marking the highest price that AgriHQ has recorded since it began collecting wool prices in July 2005.

New Zealand's lamb wool season is just starting to pick up, with most of the trading usually occurring between December and February. Prices for most wool types rose at auction yesterday, underpinned by steady demand and a lower New Zealand dollar, AgriHQ said. Some 92 percent of the 5,716 bales on offer were sold at auction.

"Lamb prices are expected to perform well this season so we'd expect prices to hold around these higher levels or even to set new record highs," said AgriHQ analyst Emma Dent. "There was strong demand out of China for lamb wool last season and it looks like that's continuing into this season."

Wool exports increased 12 percent to $836 million in the year ended Sept. 30, making it the nation's 13th largest commodity export. China is the largest export destination for New Zealand's wool, accounting for just over half of total wool exports in the year through September, according to Statistics New Zealand data.

BusinessDesk.co.nz

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