Saturday, March 30, 2024

Buyers paying up for good wool

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A refreshing transformation is taking place in the wool market with a clear price gap emerging between good-quality and poorer wools, PGG Wrightson’s South Island sales manager Dave Burridge said.
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The split emerged at the first Christchurch auction of the new season on Thursday.

For the crossbred wools 35 micron and above well-prepared, good-coloured wool was priced 2% to 7% higher than at the final sale of the previous season on June 27  whereas less stylish wools were 2% to 4% cheaper. 

The numbers were similar for 31 to 34 micron wools.

The price gap could be $1/kg on the same micron level and is a signal good preparation will be rewarded, Burridge said. 

“Where you’ve got that vegetable matter in the wool and discolouration the trade is sending a strong message that there’s little opportunity to sell in today’s market.”

New season mid-micron wool, about 1500 bales in total,  was 2% to 4% dearer with the best gains again being on the better styles. 

Demand from China remains strong.

Overall, there was a big offering of 12,500 bales at the latest sale with a 22% pass-in rate following after-auction sales, which is a good result, he said.

Most of the new season wool, from pre-lamb shearing, is clearly better in quality than old season wool. That showed up in the sale as second-shear wool weakened across the board with prices down by 1% to 4%. The second-shear will be in the market for the next month or so and will struggle to compete with new supply.

Crossbred lambs’ wool was 4% to 6% cheaper, being out of season and out of favour, Burridge said.

With shearing for mid-micron and finer wools through the South Island over the next few months the NZ Merino Co’s commercial manager Keith Ovens says farmers should be making sure grass seed and other vegetable matter is carefully separated from main fleece lines during sorting and classing.

“It’s a seasonal issue and there’s not much that can be done to stop the seed getting into the wool when the sheep are poking about for food and we’re just saying the shed hands should be vigilant in the sorting, take out the high VM pieces so that the bulk of the line is not downgraded.”

The main impact will be on half-breed and Merino wool where a $20/kg-plus value could be reduced by up to $4 to $5 if there is too much seed.

Sales, in micron level, price/kg cleanL Full wool good to average colour: 25-micron, $14.12/kg, down 21c; 26, $12.88, down 27c; 27, $11.65, up 63c; 28, $10.83, up 35c; 29, $9.50, up 5c; 30, $8.55, down 16c; 31, $6.82, up 17c; 32, $5.70, up 77c; 33, $4.69, down 14c; 34, $3.72, down 32c; 35, $3.70, up 35c; 36, $3.62, up 37c; 37, $3.53, up 31c; 38, $3.49, up 41c; 39, $3.13, up 5c. Crossbred second shear: 33-micron, 3-to-4 inches,  $4.21kg, down 17c; 35, 3-to-4 inches, $3.15, down 3c; 2-to-3 inches, $2.65, down 30c; 37, 3-to-4 inches, $2.96, down 7c; 2-to-3 inches, $2.55, down 20c; 39, 3-to 5 inches, $2.75, down 25c; 3-to-4 inches, $2.68, down 28c; 2-to-3 inches $2.50, down 20c. Merino, best topmaking styles: 15 micron, $28.30kg/clean, steady; 16, $24.50, up 62c; 17, $24.35, up 59c; 18, $24.10, up 71c; 19, $22.90, up 37c; 20, $21.55, up 25c.

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