NZ wool prices gain at auction as buyers favour South Island fibre

Friday 3rd June 2016

New Zealand wool prices gained at yesterday's South Island auction compared to the lower values achieved at last week's North Island auction, as buyers continued to discriminate between the fibre produced on each island.

The benchmark 39-micron strong wool price advanced to $5.90 per kilogram from $5.85/kg last week, while 30-micron lamb wool rose to $6.20/kg, from $5.95/kg, AgriHQ said. A stronger New Zealand dollar against major trading currencies meant prices at this week’s South Island auction fell compared with the South Island auction a fortnight ago, AgriHQ said.

"For the most wool types, prices stayed above last week’s North Island auction," said AgriHQ analyst Shaye Lee. "Price disparity between the two islands are common at this point in the season as the supply tails off. South Island sheep breed mixes usually produce more wool with the traits that buyers favour. Added to this is the selective buying behavior that attracts stronger competition for the wool types that buyers perceive to be ‘right,’ in terms of colour, length and microns. This makes auction prices better supported in the south compared with the north."

Some 6,700 bales were offered at auction yesterday, with an 80 percent clearance rate, according to a report from New Zealand Wool Services International. Next week's North Island sale will include about 8,100 bales.

BusinessDesk.co.nz

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