NZ wool auction prices continue to lag behind last year's levels

Friday 12th May 2017

New Zealand's wool market continued to trade at weak levels at the latest auction.

At the latest North Island auction yesterday, 37-micron wool fell 15 cents per kilogram to $3.65/kg compared with both the previous North Island auction a fortnight ago and the South Island auction last week, AgriHQ said. Prices for the fibre are 36 percent below year earlier levels, AgriHQ said.

Meanwhile, the price for 30-micron lamb wool traded at $3.55/kg, up 5 cents/kg from the previous North Island auction but 15 cents/kg below last week's South Island price, AgriHQ said. Prices for the fibre are 42 percent below year earlier levels, AgriHQ said.

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 that wool export prices may remain subdued until inventory is worked through and demand from China returns.

AgriHQ noted that a larger portion of coarse crossbred wool was sold at the latest auction, making up 63 percent of the total wool sold, up from 56 percent at the last North Island sale two weeks ago.

Some 76 percent of the 6,049 bales on offer were sold at the latest auction, ahead of the 75 percent clearance rate for the season to date, but lower than last year's clearance rate, AgriHQ said. Next week's South Island auction is expected to have 9,000 bales on offer.

(BusinessDesk)

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