Wool gains as price declines lure Chinese buyers
The price for clean 27-micron wool rose to $9.55 a kilogram at yesterday's South Island auction.
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New Zealand wool rose at auction as a drop in the local currency and last month's price declines lured buyers from China, the country's biggest wool buyer.
The price for clean 27-micron wool rose to $9.55 a kilogram at yesterday's South Island auction, from $8.85/kg the previous week, according to AgriHQ. Meanwhile, the price for 29-micron wool increased to $9.25/kg from $8.50/kg, and 35-micron wool gained to $6/kg from $5.70/kg, AgriHQ said.
Wool auction prices in New Zealand softened through October as Chinese buyers were absent from the market after officials withdrew import quotas from traders, and held off redistributing them following higher levels of wool imports earlier in the year and amid a softer economy, according to AgriHQ. The drop in prices and prospect of quota being redistributed helped lure buyers back to the market this week.
"Quota issues out of China had resulted in reduced participation which saw prices ease through much of October," said AgriHQ analyst Emma Dent. "The lack of participation from China also resulted in other international buyers waiting for prices to decrease due to reduced competition. However, with the chance of the quota being redistributed traders in China were keen to source wool at these cheaper prices which saw increased competition."
A weaker kiwi dollar had also made local wool cheaper for overseas buyers, she said.
Some 5,100 bales were offered at yesterday's auction, with a 90.5 percent clearance rate, according to New Zealand Wool Services International.
(BusinessDesk)
Tina Morrison
Fri, 06 Nov 2015
Fri, 06 Nov 2015
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Wool gains as price declines lure Chinese buyers
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