NZ wool prices mixed with volumes seen declining near season end

Friday 18th March 2016

New Zealand wool prices were mixed at auctions across both islands this week as volumes taper off in the last double selling event for the season.

Crossbred second-shear wool, of between 36 to 39 microns, was generally steady to 3.5 percent cheaper at an average $5.60 per kilogram at auction yesterday compared to last week's auction, according to AgriHQ. Still, strong crossbred wool in general is 81 cents per kilogram higher than a year ago.

Some 91 percent of the 18,733 bales on offer were sold at the combined North and South island auctions amid strong competition among Australian and Chinese buyers. This was the last double selling centre sale for the season, following the wind down of the main shearing season from December to early February. Next week's sale will be held on Wednesday instead of Thursday, ahead of the Easter holiday weekend. It will include about 7,900 bales from the South Island.

Lamb wool increased to $6.50/kg, from $6.35/kg last week as Chinese demand pushed coarser lamb wool 1 to 1.5 percent higher, while finer lamb wool declined 4 percent. Lamb wool volumes are expected to taper off as farmers sell the last of their spring lambs to meat processors over the next few months.

BusinessDesk.co.nz

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