Wool market improvement

Rob Cochrane

Wool Procurement Manager,

PGG Wrightson Wool

Prior to February 13, there had been an expectation that coarse wool prices may improve slightly given the on-going wet weather experienced across much of the North Island, resulting in shearing and transport interruptions hence lesser wool volumes filtering through to market.

We all know what events have occurred across wide areas of the North Island since that time, and our thoughts go out to all people who have had their futures re-mapped as a result.

Wool auctions held in both Napier and Christchurch in early February had recorded very modest increases as limited evidence of renewed interest from Chinese mills became apparent, although not all traditional types were targeted.

A South Island only auction on February 16 however brought a much more urgent response from exporters, several of whom had scoured wool stocks ready for shipping off shore as well as greasy wool stocks ready to be scoured with significant volumes possibly suffering from the severe flooding event which engulfed one wool scouring facility.

Consequently, market prices for most coarse wool types improved by between six and twelve percent in the Christchurch auction room, compared to prices ruling a week earlier, as exporters tried to cover their forward sold positions.

Most interest was shown for well-prepared second-shear types measuring from 35 to 38 microns, of very good colour and little or no vegetable matter contamination, plus well skirted lamb’s wool types, preferably finer than 31 microns, of very good colour and 0.0 percent vegetable matter contamination.

Having said that however, and with the current season delivering poorer colour full length fleece wool than desired due to the warm, humid conditions experienced, being no fault of growers, average to good colour fleece wools also drew good support with increases in price of between six and eight percent compared to the week earlier.

Mid micron wool types representing the Corriedale and Halfbred breeds continued to struggle, with only limited interest from exporters directed mainly towards finer than approximately 26 micron types of good colour, good staple length, and low vegetable matter contamination measurements.

A few lines of similarly bred lambs’ wool in the 22 to 23 micron ranges drew very good support from exporters who obviously had specific, but limited quantity, orders to fill.

The February 16 South Island auction was also the designated wash-up date for any current season Merino wool types which had either missed the main fine wool selling dates prior to December, or had been passed-in at