North Canterbury News: February 08, 2024
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Wool prices improve<br />
PostChristmas prices for all crossbred<br />
wool types at auction have lifted.<br />
PGG Wrightson Wool general<br />
manager Grant Edwards says in a<br />
market report in the Wool Street<br />
Journal,supply and demand factors are<br />
playing into ascenario that favours<br />
growers.<br />
Supply going forward for sale is lower<br />
than anticipated, while manufacturers<br />
in China haveincreased demand,<br />
further stimulating the wool market.<br />
‘‘Compared to what had been<br />
rostered, reduced quantities of wool<br />
havecome forward for sale.<br />
‘‘Buyers are therefore competing<br />
strongly to fill commitments they have<br />
made.<br />
‘‘Prices for all types are rising<br />
accordingly,’’ Mr Edwards says.<br />
PreChristmas concerns relating to<br />
the climate suggested that arelatively<br />
high proportion of this season’s wool<br />
would be degraded due to vegetation<br />
contamination and colour.<br />
‘‘While those rain and humidity<br />
climatic factors have eventuated, due to<br />
buyers from China strengthening the<br />
market, increased demand has<br />
balanced out, meaning average to poor<br />
types are still attracting competition.<br />
‘‘The auction system has come into its<br />
own as aforum for transacting the<br />
product, bidding from exporters who<br />
need to fill their orders has been<br />
spirited, with practically all wool<br />
coming to auction being sold.<br />
‘‘Likewise, due to smaller quantities,<br />
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Supply and demand ... These factors are<br />
favouring growers in the postChristmas<br />
wool market.<br />
PHOTO: FILE<br />
generous premiums are being paid for<br />
the best styled, good colour, low VM<br />
wools, including lambs’ wool of these<br />
types.’’<br />
From afarmer perspective, Mr<br />
Edwards says, prices need to continue<br />
to improve, though it is ‘‘gratifying to be<br />
able to deliver some positive news’’.<br />
‘‘Longer term, global demand for<br />
natural fibres seems to be increasing.<br />
‘‘As the world becomes more aware of<br />
the environmental challenges<br />
associated with synthetics, behaviours<br />
will change.’’<br />
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RURAL LIFE<br />
<strong>North</strong> <strong>Canterbury</strong> <strong>News</strong>, <strong>February</strong> 8, <strong>2024</strong><br />
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