Friday, April 26, 2024

Wool gets a boost from strong showing

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Price is the closest strong wool has come to $4 a kilogram in several years.
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Strong wool fleece values at the latest South Island wool sale climbed to heights not seen on the strong wool indicator for at least three years.

The pricing for better style wools supports cautious optimism, with the South Island market once again attracting very strong demand for super and good style crossbred fleece and second shear wool types, PGG Wrightson South Island auction manager Dave Burridge said.

That demand boosted the price of super-good style crossbred fleece by 8%, up to a $3.85 a kilogram average, the closest strong wool has come to $4.00 in several years.

Average style crossbred fleece also got a significant lift, up 5% to $3.00.

Crossbred second shear fleece 50-100mm in length lifted 3% to $3.50, while same category average style was also 3% at $2.90.

The South Island strong wool indicator shows a gradual climb from the January 2023 sale with the best price at $2.50. The price eventually hit $3 in early April, plateauing until mid-May when the climb started ahead of the steep rise to $3.85 last week. 

Also encouraging is that China continues to increase export volumes, recovering from the last three years to open borders and resume higher levels of economic activity.   

On the other hand, Burridge said end-of-season lambs wool showing high colour readings struggled in the sale, while good style lambs wool around 31-32 micron sold more readily. 

He said early indication for mid micron wools to come is that current interest is limited, reflecting the market tone in Australia.

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