New Zealand - Wool Market Continues to Rise [ 24 Oct, 2013]
New Zealand Wool Services International Limitedís General Manager, Mr John Dawson reports that the underlying demand and a supply shortfall helped to increase wool prices at todayís South Island offering of 7,500 bales. This was on an 88 percent clearance.
The weighted indicator for the main trading currencies easing today by 1 percent compared to the last sale on the 17th October.
When compared to the South Island sale on 10th October Merino Fleece 17.5, 20 and 20.5 micron were 1 to 1.5 percent cheaper. 18 to 19.5 micron were firm to sellers favour and 21 to 22 micron were 3 to 5 percent cheaper.
Mid Micron Fleece 25 and 25.5 micron were 1 to 2 percent cheaper, 26 and 27 micron were firm, 27.5 to 28 micron were 2.5 percent dearer and 29 micron, 9 percent dearer.
Compared to North Island on 17th October Fine Crossbred Fleece 32 to 36 micron were 5 to 6 percent dearer.
Fine Crossbred Early Shorn and Second Shear 31 to 33.5 micron, 3 to 5 inch and 3 to 4 inch were 5 percent dearer. 34 to 36 micron, 3 to 5 inch and 3 to 4 inch were 3.5 to 4 percent dearer.
Coarse Crossbred Fleece 37 to 39 micron, 4 to 6 inch were 4.5 percent dearer.
Coarse Crossbred Early Shorn and Second Shear 3 to 5 inch, 3 percent dearer and 3 to 4 inch were 5 percent dearer.
Next sale on 31st October comprises approximately 5,500 bales from the North Island.
Source: NZ Wool Services International Ltd
New Zealand - Low Wool Supply Puzzles Exporters [ 11 Oct, 2013]
Wool industry representatives are trying to unravel the mystery of an unexpected drop in the amount of wool coming forward for auction.
Thursday's South Island sale had fewer than 8000 bales on offer, which was about 40% below the amount which had been anticipated, while the amount of wool for next week's North Island sale is 25% lower than what had been rostered.
That's even more of a surprise, as recent North Island sales have been offering more than the amount forecast.
New Zealand Wool Services International marketing manager Malcolm Ching says the likely explanation is that more wool is being diverted from auction into other selling avenues, such as contracts or private sales.
"Because anecdotal evidence suggests that shearing is right up-to-date, stock numbers are only back a small amount, the weather effect has only been minimal, so there doesn't seem to be this massive shortfall of wool overall," Mr Ching says.
"Our export figures are up to or ahead of where they were at the same time last year, so it's basically indicating that there is less wool coming through the public auction system in the south at the moment."
A lot of people rely on sourcing most of their wool from that venue and it puts pressure on the local market if it's not there on the day.
Other channels wool is being diverted through include direct contracts between growers and exporters or growers and brokers, the private merchanting network and an electronic auction system which is mainly used by private merchants and wool exporters.
The unexpected drop in wool supply for auction can upset the buying arrangements of those who use the auction system but it's also benefiting farmers because it's helping to lift prices, Mr Ching says.
"The more wool that is not available on the open market actually makes what is available on the open market more sought after, and the auction is what is used as the benchmark for setting prices both locally and overseas," he says.
"So it can be a positive move to help stabilise prices."
The wool industry's rostering committee of exporters, brokers and merchants met on Friday to discuss the issue.