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1 December 2023
Wool Street Journal
Market Commentary

Wool market report: Market largely steady after recent price rises

A significant quantity of merino wool has been offered at the South Island sales throughout November. Enduring interest from one of the major Australian fine wool exporters, who has attended our fine wool sales in person, further strengthens buying power in the room. This has resulted in prices that are solid compared to Australia, and in some instances exceed those received by Australian growers.

After these sales we are now well through the merino season, which is largely coming to an end. Generally we now collate those types and offer them all in February.

Compared to earlier sales, mid micron wool has also recently been in sellers’ favour compared to earlier sales.

After a period of significant price rises in the last two or three months, November has marked more subdued demand for crossbred wool as the market has ‘taken a breath’. This in part has been reflected due to currency fluctuations as the New Zealand dollar has risen to a degree compared to the United States dollar.

As the North Island’s peak shearing season begins, remedying the substantial damage done to the main scour at Awatoto by Cyclone Gabrielle in March is on schedule, meaning the plan for this season’s North Island wool is to scour it in the North Island. Everyone involved has worked hard and diligently to return this key facility to production.

We have hosted several overseas clients recently, including from Danspin, Denmark, one of our largest international customers, whose most senior representative spent time in our office, and on several farms.

During these visits overseas export clients take great interest in the issues of traceability, surety of supply and integrity of production. This tends to be their key focus on farm, seeking to better understand the supply chain, animal husbandry and wool growing practices, and the prospects for future production of our natural, sustainable, biodegradable product.

Grant Edwards

General Manager

PGG Wrightson Wool

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