Thursday, December 7, 2023

South Island strong wool warms up bidding 

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Prices significantly up compared to this time last year.
Strong wool has natural variables that do not compete as a commodity ingredient. This might suggest pessimism about our future with commodities, says Phil Weir, ‘but I love producing a commodity’.
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The South Island strong wool indicator’s steady incline has reached seasonal high prices for well-presented good quality wool.   

South Island PGG Wrightson auction manager Dave Burridge said an excellent offering of pre-lamb shorn wools saw active competition from buyers with crossbred wools continuing their recent upward momentum, which are now at seasonal high levels. 

Best style crossbred fleece reached $3.93/kg while good style fetched $3.61 and average style $3.17.

These prices are significantly up compared to the $3.15 this time last year and $2.70 in October 2021. 

Crossbred second shear 50-100mm topped at $3.33 with lesser quality wool selling at $3.10 and down to $2.75. 

The mid-micron and Merino offering also saw good competition, with the auction finishing the day with 93% of all wools on offer having been sold.

The best of the Merino 16-micron fleece sold at $25.50/kg with average style at $20.50. The best of the 18-mic fleece fetched $18.30 with average style at $16.70 and 20-mic at $14.80.   

Although the indicator is slightly back in the North Island, PGG Wrightson North Island auctioneer Steve Fussell said, the mood of the market was positive.   

“A small amount of very good styled wool was slightly cheaper but what really saw a good pick up was the B and B minus styled longer wools that were presented.” 

The sale of the wool was again very well spread among the buyers with bidding coming fast and hard. A degree of urgency was felt in the room, Fussell said. 

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