Friday 10th February 2017
|Text too small?|
New Zealand lamb wool prices continued to decline at this week's auction amid lacklustre demand during the peak production period.
The price for 30-micron lamb wool dropped to $3.20 a kilogram at yesterday's North Island auction, down from $3.25/kg last week, according to AgriHQ. The price for 37-micron crossbred fleece also slipped by 5 cents to $3.40/kg from the previous comparable auction, AgriHQ said.
New Zealand is at the tail end of its main sheep shearing season which runs from December to early February. Lamb wool reached record highs of $7.50/kg last season, however market conditions are less buoyant this season, as China, New Zealand's largest export market, sits on high levels of finished inventory amid a shrinking manufacturing sector, while demand remains weak in Europe, and the fibre continues to face stiff competition from synthetics.
"The market continues to struggle in this week’s auction, where a higher supply is hitting the market," said AgriHQ analyst Sam Laurenson, noting that the currency's strength over the week leading up to the auction had added to the downward pressure.
Buyer activity for the 5,500 bales on offer picked up slightly from last week, with the auction clearance rate improving to 77 percent, compared with a clearance rate of 64 percent for 11,819 bales at auctions across the North and South islands last week.
No comments yet
MARKET CLOSE: NZ shares mixed; Z drops on downgrade as Air NZ bounces back
NZ dollar benefits from US short-term government funding deal
Powerhouse purges Motim board, SolarBright founders quit
Investore earnings, dividends to get boost from Bunnings acquisition
Trans-Tasman Resources to go public in backdoor listing on ASX, via Manhattan Corp
Wgtn's Habitual Fix on Featherston liquidated for a second time
Former trustee pleads guilty to fraud
Juken NZ looks to halve Gisborne mill staff in bid to drive profitability
ATO chases HT&E for more than A$100M over licensing of former NZ mastheads
Auckland Council puts feelers out for construction syndicate capable of $300M+ waterfront build