NZ wool prices mixed at weekly auction as buyers target specific fibres

Friday 5th August 2016

New Zealand wool prices were mixed at yesterday's South Island auction as buyers focused on specific wool types.

Prices for mid-micron wool, which covers fibres with a thickness of between 25 to 31 microns, increased an average 1 percent compared with last week's South Island auction, with 27-micron wool rising to $9.85 per kilogram from $9.65/kg, AgriHQ said. Prices for strong crossbred wool, which includes 36 to 39 micron fibres, traded at similar levels to the previous week, with 39-micron wool unchanged at $5.55/kg, AgriHQ said.

"The South Island auction usually offers varied wool types compared with the North around this point in the season, but at a similar total volume," said AgriHQ analyst Shaye Lee. "This attracts more competition between bidders for certain wool types that meet the contractual needs, translating into higher prices."

Some 74 percent of the 4,900 bales on offer were sold at auction. That's down from 85 percent last week, which was the highest clearance rate since the end of May due to European buyers wanting to finalise their orders ahead of their holiday season in August.

The next sale on Aug. 11 will include about 8,800 bales from the North Island, according to New Zealand Wool Services International.

BusinessDesk.co.nz

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