NZ wool market improves at weekly auction
Some 15,209 bales were offered at yesterday's double sale across the North and South islands, with 89% sold.
Hot Topic
Infrastructure
New Zealand's wool market picked up at the latest weekly auction, achieving the highest clearance rate this year, on increased volumes.
Some 15,209 bales were offered at yesterday's double sale across the North and South islands, with 89% sold, the highest clearance rate since December 22, according to AgriHQ. At the last double sale event a fortnight ago, 2500 bales were withdrawn by growers before the auction, with 77% of the remaining 13,000 sales being sold.
New Zealand is at the tail end of its main sheep shearing season, which typically runs from December through February. Market conditions have been less buoyant this season, amid lacklustre demand from China, New Zealand's largest export market, and that's seen some woolgrowers hold back their bales from auction. However, conditions improved at the latest auctions, with a pick-up in wool volumes and prices for lamb, strong crossbred and fine crossbred, AgriHQ said.
"This week's sale in the North and South Island had an increase in bales offered compared to the last double sale a fortnight ago," said AgriHQ analyst Sam Laurenson. "The clearance rate also rose from the last comparable sale to 89% for this week's sale. This is almost in line with last year's clearance rate for the season to date of 90%. This increase in interest is a positive sign for the wool market with the typically busier period almost at an end."
Compared with the previous double auction, prices for 30-micron lamb wool rose 45 cents/kg, while North Island prices increased 40 cents/kg, he said. For 35-micron crossbred wool, South Island prices increased 25c/kg while North Island prices rose 20c/kg.
The latest trade data published by Statistics New Zealand this week shows the value of the country's wool exports dropped 32% to $39 million in January, compared with the same month a year earlier. In the 12 months through to the end of January, wool exports were down 22% to $647 million, the agency said.
(BusinessDesk)
Tina Morrison
Fri, 03 Mar 2017
Fri, 03 Mar 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZ wool market improves at weekly auction
65342