The European summer holiday period kept some wool buyers out of the New Zealand market this week, denting demand for fine crossbred wool.
The price for 35-micron wool fell to $5.50 a kilogram at yesterday's South Island wool auction from $5.55/kg when it was last traded at the previous South Island auction two weeks ago, according to AgriHQ.
"European demand mainly drove the activity for fine crossbreds, so the slight easing of 35-microns wasn't unexpected, taking into account it's currently a holiday season in the European countries," said AgriHQ analyst Shaye Lee. "Slightly softened market conditions led to prices generally retreating."
Based on the indicator reading, mid-micron wool overall gained about 3% on auctions over the past two weeks. The price for 29-micron wool lifted to $8.60/kg, 40c/kg higher than the past two weeks, AgriHQ said. Meanwhile, strong crossbred wool generally held steady from last week, with 39-micron fibres unchanged at $5.45/kg.
Some 72% of the 6470 bales on offer were sold at auction, down from a 74% clearance rate at the equivalent South Island auction two weeks ago. The next sale on August 25 will offer about 5300 bales from the South Island, which is 35% below the level anticipated due to adverse weather conditions, according to New Zealand Wool Services International.
(BusinessDesk)
Tina Morrison
Fri, 19 Aug 2016
Fri, 19 Aug 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZ wool prices drop at auction as demand softens during European holiday period
60914