NZ wool prices advance at auction as buyers favour South Island fibre

Friday 20th May 2016

New Zealand wool prices gained at yesterday's South Island auction as buyers preferred the southern offering to last week's North Island selection.

The coarse crossbred wool indicator advanced 3 percent from last week, with the benchmark 39-micron strong wool price rising to $5.95 per kilogram from $5.70/kg last week, AgriHQ said. The lamb wool indicator advanced 1 percent, with 30-micron lamb wool increasing to $6.20/kg from $6.05/kg last week.

"Prices at this week's South Island auction were stronger than the North Island auction last week," said AgriHQ analyst Shaye Lee. "Slight price discrepancies between the two islands were not uncommon, as seen during previous auctions. Movements were varied across wool types when compared with the last South Island auction."

Some 7,016 bales were offered at auction yesterday, the highest level so this month. However only 76 percent of the bales were sold, lower than the past three auctions as some suppliers were holding back for better prices, Lee said.

Next week's North Island sale will offer about 8,100 bales.

BusinessDesk.co.nz

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