NZ wool trades at record high amid tight supply
By Tina Morrison
Sept. 4 (BusinessDesk) - New Zealand wool is trading at record high prices, pushed up by strong demand and limited supply, though the outlook is murky.
The price for clean 29-micron wool changed hands at a record $10.45 a kilogram at yesterday's North Island auction, up from $9.95/kg at the previous North Island auction on Aug. 13, according to AgriHQ. Meanwhile, the price for 27-micron wool jumped to $10.90/kg, up from $10.70/kg at the previous North Island auction and at its highest level since October 2002, AgriHQ said.
Some 97.1 percent of the 7,543 wool bales offered at auction were sold yesterday. Coarse wool, of 35 microns, and lamb wool are now in a quiet period with very little being available and auctions now contain a higher volume of finer wool types which make up a smaller proportion of New Zealand's wool exports.
"Finer wool types have been performing well compared to coarser wool types and mid-micron prices have been especially strong due to a lack of supply," said Emma Dent, an analyst at AgriHQ.
"The wool market is still ticking along, with activity occurring at auctions, but there is no real underlying strength as there was earlier in the year," she said. "It is expected that the wool market will remain much the same for the next month with the longer term view more uncertain."
Next week's sale of about 8,900 bales will be held in the South Island, according to New Zealand Wool Services International.