Merino wool prices ease as value rises

Merino wool prices eased at sales on both sides of the Tasman last week, while a lower exchange rate saw crossbred wool prices rise at the South Island sale in Christchurch.

Since October 22, the New Zealand dollar has eased 4.3% against the main wool trading currencies, and this resulted in prices up to 6% higher than the last South Island sale on October 15.

Wool Services International reported that fine crossbred fleece was 2% to 4% dearer; longer shears rose 3% to 6%; and shorter shears rose 1.5% to 2.5%.

Coarse crossbred fleece and shears rose 2% to 4%, and oddments were firm.

But merino wool prices fell at the Christchurch sale, in line with the Australian market, with prices for a nominal offering of fleece falling 3% to 5%.

The sale was quite strong, with 89% of the 10,500 bales on offer selling.

New Zealand Merino commercial manager Keith Ovens said after a sharp and unexpected rise in prices at the last Melbourne sale, the market corrected itself last week.

Hogget wool was hit the hardest, with 14 micron to 15 micron wool falling up to $3 a kg.

Mr Ovens said prices for this type of wool were still ahead of the same time last year.

The 2000-bale New Zealand offering was helped by a new buyer, Australian Merino Exports, buying 25%.

"It could have been a lot worse without them."

Compared with last week's Melbourne sale of New Zealand wool, prices for 18 micron to 20 micron wool remained firm while 16 micron to 17 micron lines eased about 2%.

Oddments and skirtings continued to sell well.

A fifth of the offering was passed for failing to reach growers' reserve, and the average price for all New Zealand wool sold slipped from $10.07 a kg last week to $9.35 due to the weak market for the high priced superfine offering.

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