This week PGG Wrightson's South Island wool procurement manager Rob Cochrane joins The Country's Jamie Mackay to look at the wool market this month.
The 2019/20 wool season wrapped up yesterday with 17 thousand bales on offer across both islands, and there are a lot of growers still resisting and holding onto wool.
Mid-micron and crossbreed growers may be concerned that they were losing as much as 50 per cent compared to last year, Cochrane said.
Mackay said that from a historical perspective, the wool market had never seen a slump like this.
Cochrane agreed, reflecting back on 1969 when wool prices were around 23 cents per pound.
It was criminal that prices continued to fall, Mackay said, with Covid-19 still affecting the market in terms of boarder restrictions, imports, and offshore processing.
Cochrane added perspective by saying the price of wool had gradually been going down over the past few years, and people don't necessarily have the money to buy wool.
Mackay noted that until there were alternate sustainable long-term uses for crossbreed wool, the industry was "buggered".
Cochrane agreed, but stressed that traditional uses of wool, such as carpet and internal furnishings would still help the industry in the long run.
The Country's Rowena Duncum is joined by PGG Wrightson's GM for Livestock, Peter Moore, to chat about New Zealand's livestock market.
June was a more typical month compared to earlier in the year for stock flow, with the freezing works freeing up, sale yards back in operation, and online platforms running smoothly, Moore said.
Although an impressive 8.3 per cent rise in the Global Dairy Trade Auction this week had so far had no immediate impact on confidence for New Zealand - it was still great to see prices heading in the right direction - particularly during winter, Moore said.
The really good news came from the significant price lift for Whole Milk Powder (WMP).
Some amazing bull sales had taken place recently, with one in Wairoa going for $104,000 NZD. Duncum asked Moore what he thought was driving this price increase.
Genetics played a big part, said Moore, as farmers were looking for "outstanding genetics with good growth rate and good meat production".
Duncum finished the interview by asking Moore what the next few months might look like for the livestock industry.
Moore said that this was normally a quieter time of year - but feeder calves were starting to hit the market.