Wool prices improve at auctions

Wool prices showed some life at auctions on both sides of the Tasman last week, but prices remain well below desirable levels.

The average price of all New Zealand merino wool sold at Melbourne on Thursday was $8.91 a kg, 28c higher than in the previous sale but still well below the season average of $10.54 a kg.

Meanwhile, in sales at Christchurch and Napier, better-styled crossbred wool increased by up to 2.5% compared to the February 12 sale, while prices for poorer styled wool was unchanged.

New Zealand Wool Services International reported that the New Zealand dollar had eased 2.5% since that sale, which boosted prices.

Fine and coarse early and second shorn wool rose by up to 2%, first lamb's and wool 28 micron and finer rose 2.5% while coarser and oddments firmed or were unchanged.

In Melbourne, New Zealand Merino assistant commercial manager Blair Davies said prices were "not great, but in the current situation it was a better sale than we had expected".

It showed there was still demand for merino wool, with five main buyers chasing the New Zealand catalogue.

But the market for the finer edge, less than 15 microns, was causing some problems, Mr Davies said.

The wool went into suits and expensive knitwear, products where demand had been hit by the global recession.

There was a 16% passing.

 

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