INDEPENDENT NEWS

NZ wool sale volumes rise at double auction

Published: Fri 11 Aug 2017 01:30 PM
NZ wool sale volumes rise at double auction across North, South islands
By Tina Morrison
Aug. 11 (BusinessDesk) - A higher volume of wool was sold at auction in New Zealand this week after organisers skipped a week and held a double auction across both islands.
Some 80 percent of the 15,054 wool bales offered at auctions in Napier in the North Island and Christchurch in the South Island were sold yesterday, AgriHQ said. That's ahead of the 72 percent clearance rate for the 2016/17 season which ended June 30, and the average 77 percent rate for the first six weeks of the current season.
"After a week break in wool sales, the market came back with some force with both reasonable volumes and a wider range of styles on offer," said AgriHQ analyst Sam Laurenson. "Of the bales on offer the split was fairly equal between the North Island and South Island with a 52 percent share and 48 percent share respectively.
"It is difficult to tell whether this upward trend is likely to continue in the near term as stock piles are slowly released into the market."
New Zealand is coming out of its worst wool season since the global financial crisis as China, the largest buyer of the fibre, switched its preference to fine wool and away from strong wool that makes up the majority of the country's clip. Industry estimates suggest between 150,000 and 200,000 bales may have been stockpiled by farmers, brokers, merchants and exporters, as sellers rejected weak prices below the cost of production.
At the latest auctions, North Island prices were up for all types available at the last North Island sale on July 20 and the better quality cuts improved by more than worse quality cuts, Laurenson said. South Island prices were not as positive with all comparable styles down on the South Island sale two weeks ago.
Overall, the coarse crossbred wool indicator fell 7 cents to $2.73 a kilogram from the previous auction two weeks ago, and was up 4 cents from three weeks ago, AgriHQ said.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Australian bushfires continue to blaze – Expert Reaction
By: Science Media Centre
Higher retail consumption lifts GDP
By: Statistics New Zealand
Fairer pay with minimum wage rise for quarter of a million
By: New Zealand Government
Tourism and Environment: Pristine, popular... imperilled?
By: Parliamentary Commissioner For The Environment
Gordon Campbell on the Aussie bush fires and Suleimani
By: Gordon Campbell
Bushfire Crisis: Climate Politics Turning Point Aus Needs?
By: The Conversation
Scott Morrison: the bushfires demand a climate policy reboot
By: The Conversation
Incendiary Extinctions: Australian Fires
By: Binoy Kampmark
Aussie bushfire smoke reaches NZ – update 2nd Jan 2020
By: NIWA
2019 NZ's fourth warmest year on record - Expert Reaction
By: Science Media Centre
2019 second hottest year on record, UN confirms
By: UN News
Fossil Fuel Companies Called On To Foot Australia Fires Bill
By: Eoin Higgins
GDP growth reflects a strong economy
By: New Zealand Government
NZ in ‘GDP per person recession’ under Labour
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media