Despite some corrections in the market over recent weeks, positive trends continue to emerge, particularly in key demand areas. Here’s a look at the latest developments shaping the wool market.

South Island Market Overview

In the South Island, February’s Christchurch wool exchange produced strong clearance rates, despite seasonal influences affecting colour and tensile strength. Adult wool remained in demand, with new-season lamb’s wool mostly selling above growers’ expectations.

Later in the month, a larger-than-expected offering of 10,600 bales led to some market corrections, particularly for crossbred fleece and lamb’s wool. However, fine wool growers saw some encouraging results, with a small offering of merino wool exceeding expectations as the fine wool season came to a close.

By mid-March, demand softened further, particularly for lamb’s wool, as global trading hesitancy increased. Uncertainty around trade tariffs has made buyers cautious, though well-coloured, low-vegetable-matter wool remains in demand—albeit in limited volumes.

At the 27 March South Island auction, the market saw further softening across most types, with lamb’s wool most affected—especially where faults were present. With the shift towards a buyer’s market, prudent wool preparation is now more critical than ever to maximise grower returns.

North Island Market Overview

In Napier, the North Island wool auctions held firm, with values tracking just 1% lower in late February. While there were some price pressures—especially in lamb’s wool, where increasing colouration and vegetable matter levels impacted demand—buyer interest remained widespread.

At the beginning of March, higher-coloured lamb’s wool led to a market indicator drop of around 4%, despite a strong presence of buyers and competitive bidding. The impact of seasonal conditions on wool quality is becoming evident, influencing pricing trends as we move further into autumn.

By 20 March, the North Island sale rebounded to similar levels seen four weeks prior. Despite another good volume of wool being offered, the market reacted positively, and the tone in the sale room was extremely strong. Special mention must go to one line of second-shear wool from Hawke’s Bay and two lines of similar type from Central Hawke’s Bay, which sold well over the three-dollar greasy mark—a credit to the vendor and wool handlers involved.

Evolving Demand and Opportunities

While we’ve seen an improvement in wool prices over the past six months, exporters are now encountering resistance in major markets like India and China. As prices have reached new levels, buyers are beginning to reassess their purchasing decisions.

On a more positive note, demand for New Zealand wool has improved in key sectors. Danspin, a leading global carpet yarn producer, has reported a surge in demand from the cruise ship industry—a welcomed boost for wool carpets.

Securing large-scale domestic contracts, such as the Kāinga Ora initiative, could also provide significant long-term support for New Zealand’s wool industry. These opportunities highlight the importance of continuing to promote wool’s natural benefits to both domestic and international markets.

As we navigate market fluctuations and global trade uncertainties, quality preparation and strategic selling remain crucial. Demand for well-coloured, low-vegetable-matter wool is steady, and new opportunities in the contract sector could provide further stability.

PGW Wool remains committed to supporting growers through these market changes. Thank you to our growers, buyers, and industry partners for your continued support. We’ll keep you updated as we move further into the autumn shearing season.

Warm regards,
Rachel Shearer
GM Wool