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NZ wool prices unchanged at auction amid Chinese uncertainty

NZ wool prices unchanged at auction amid Chinese uncertainty

By Tina Morrison

Aug. 28 (BusinessDesk) - New Zealand wool prices held steady at auction this week amid uncertainty in China, the country's largest export market for the fibre.

The price for clean 35-micron wool, a benchmark for crossbred wool used for carpets and accounting for the majority of New Zealand's production, was unchanged at $6.15 per kilogram for a fifth week at yesterday's South Island auction, 7 percent ahead of the year earlier, according to AgriHQ. The price for lamb wool held at $7.20/kg for the ninth consecutive auction, and is 31 percent ahead of the year earlier.

The clearance rate at auction fell below 90 percent for a second consecutive week, with just 88 percent of the 8,245 bales on offer sold under the hammer yesterday, reflecting slightly weaker demand in the early part of the 2015/16 season amid economic uncertainty in China, where weak manufacturing data prompted a slump in equities and the central bank allowed the local currency to weaken.

"There are reports of some caution from Chinese buyers over the last couple of weeks and prices have steadied and the economic uncertainty both in China and globally is an important factor to watch as volumes build through the spring, however the current prices represent the strongest start to the season since 2011/12," said Rabobank commodity analyst Georgia Twomey.

Next week's North Island sale will include about 7,800 bales.

(BusinessDesk)

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