NZ wool market improves at weekly auction

NZ wool market improves at weekly auction

By Tina Morrison

Aug. 18 (BusinessDesk) - New Zealand wool prices and sale clearance rates lifted at the latest weekly auction.

Some 83 percent of the 8,251 wool bales offered at yesterday's South Island auction were sold, and prices lifted for all styles of wool on offer with the coarse crossbred wool indicator up 9 cents to $2.82 a kilogram, AgriHQ said.

"Compared to prices at the South Island sale last week, all prices were strong," said AgriHQ analyst Sam Laurenson. "Continued upward movement is crucial for the wool market with all indicators except for merino wool indicator below five-year averages."

New Zealand is coming out of its worst wool season since the global financial crisis as China, the largest buyer of the fibre, switched its preference to fine wool and away from strong wool that makes up the majority of the country's clip, leaving an overhang of stockpiles to sell in the current season which started in July.

At the latest auction, 37-micron crossbred fleece wool lifted 10 cents to $3.05/kg, while 31-micron lamb wool lifted 5 cents to $3.60/kg, AgriHQ said, noting that in general worse quality wool moved upward by more than better styles.

Wool exports are the country's 19th most valuable commodity export. Statistics New Zealand will publish the latest export data for July next Thursday.

(BusinessDesk)

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