Strong, fine wool retain strength

Strong and fine wool markets retained their strength at sales last week as buyers continue to chase dwindling supplies.

New Zealand Wool Services International reports prices at the North and South Island wool sales rose up to 8%, while the New Zealand Merino company reports fine wool prices also continued to rise at last week's Melbourne sale.

Prices paid in Melbourne were now 44% higher than at the corresponding sale a year ago.

Both sales had a clearance of 95% or better.

At the New Zealand sale, 17,650 bales were offered and compared with the previous sale on October 14, fine crossbred rose 2% to 8%, coarse carpet fleece and shears lifted by up to 5% and oddments by 3% to 6%.

A small offering of merino fleece rose by 3% to 9% but the stronger edge, 19.5 to 23.5 micron, eased by 1.5% to 4%.

New Zealand Merino operations manager Keith Ovens said the constant rise in the fine wool market appeared sustainable.

The wet season in Australia and a move from fine wool to prime lamb production, means supply of wool less than 17.5 micron has fallen 25%.

A year ago the market indicator over all New Zealand wool offered in Melbourne was 923c a kg but last week it hit 1330.

The sale attracted 2500 bales and Mr Ovens said 3000 bales would be offered at the last big sale in three weeks.

 

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