Through the few months to the end of the 2020/21 selling season wool prices largely recovered from the unprecedented lows they sunk to when the global covid lockdowns first affected the supply chain. Prices for crossbred wools have risen around 55 per cent, back to levels close to the same period two years ago.

Driving this recovery demand has been forthcoming from all quarters, including domestic and international buyers, particularly Europe, where second shears are sought after for the carpet and flooring markets. Meanwhile manufacturers in New Zealand wool’s two largest export markets, China and India, are maintaining steady interest. Although China continues its role as the dominant buyer of New Zealand wool, historically procuring between 45 to 55 per cent of the volume sold, Chinese buying power has scaled back by around 35 to 45 per cent over the past 12 months, with buyers from India taking up that part of that market.
 
At the season’s final North Island sale in Napier a full clearance was recorded, accounting for approximately 10,000 bales. At the prices offered growers are motivated to take the returns available, and buyers are enthusiastic at the excellent quality of wool coming forward to the market late in the season. Spirited bidding from all exporters drove the internal market crossbred indicator up by 18 cents at this particular sale.
 
Prices for Australian fine wools have also lifted considerably over the last three months, with the world placing a premium on natural, biodegradable fibre.
 
One exception to the general welcome trend of buoyancy for wool is half bred wools, particularly at the stronger end. This absence of pricing traction is largely driven by lack lustre demand for the end uses of half bred wool, such as in upholstery, where the global commercial market for such products, including to go into planes and hotels, remains sluggish.
 
Into the 2021/22 selling season growers can look forward with some confidence, albeit demand for crossbred wool needs to grow considerably more for returns to significantly contribute to farm profitability.

Grant Edwards
Wool General Manager