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Wool prices solid, but farmers hoping for rises in future

July 4, 2024
in Business
Wool prices solid, but farmers hoping for rises in future
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PGG Wrightson's Acting General Manager of Wool Rachel Shearer

PGG Wrightson’s Acting General Manager of Wool Rachel Shearer
Photo: PGG Wrightson

A review of the latest wool season shows prices were stable, with some wool types approaching three-year highs – however prices still needed to lift significantly for farmers to reap the rewards.

PGG Wrightson general manager of wool Rachel Shearer has been taking a look back over the season following the last auctions at the end of last month.

“The season ended solidly, which has been pleasing. We can see the market showed stability compared to the last few years, but there’s still significant [room] for growth.

“In terms of pricing, we are tracking above the last two years – especially when it comes to strong wool, some wools are actually approaching three-year highs.”

Mid-micron wools met a more challenging market, leaving brokers in the sale room to take a firm stance to protect clients’ wool from bargain-hunting buyers, she said.

Shearer said plenty of older wool had been attracting buyers, enabled by the refurbishment and return to full production of Woolworks North Island scour at Awatoto.

“Very little older strong wool now remains unsold, which is a positive position for the start of the new season, when supply will be unhampered by old stocks sitting in the pipeline.”

When it came to who was buying, Shearer said demand from China remained subdued but India was buying more, helping to offset things.

“We’re also seeing some demand from Europe, from the cruise ship industry – they’re buying wool carpets to go into the new ships they’re building.

“Post-Covid there’s been a bit of a boom in building new cruise ships, which is good news for us, however the fashion market in Europe is down – people are being more discerning with their spending, so those companies are not buying as much wool.”

Shearer said the industry would not get much of a break, with the new season starting with the first auction next Thursday.

“As the 2024/25 season commences, we can look forward to gradually improving returns as demand consolidates, with the quality of the New Zealand clip compared to most other producers leaving this country’s growers best placed to take advantage.”

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