NZ wool prices decline as Chinese buyers absent

Friday 19th February 2016

New Zealand wool prices weakened at auction as buyers from China, the country's largest export market, were still absent for the Chinese Lunar New Year holiday period.

Lamb wool, targeted by China at most auctions, fell to a nine-month low of $6.73 per kilogram at yesterday's combined North and South island auctions, from $7.03/kg last week, according to AgriHQ. Still, the price is 3 percent higher than the same time last year.

Clean 35-micron wool, a benchmark for crossbred wool used for carpets and accounting for the majority of New Zealand's production, eased to $5.73/kg, from $5.81/kg last week, although it sits 11 percent higher than the same time last year, AgriHQ said.

Some 79 percent of the total 12,290 bales on offer were sold at auction yesterday.

Chinese New Year, which fell on Feb. 8 this year, is one of the most important festivals for the Chinese community, with a week long public holiday which some extend for travel.

BusinessDesk.co.nz

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