In the latest radio interview on The Country, Rachel Shearer, General Manager for Wool at PGG Wrightson, shared her insights into the current state of the wool market as 2025 gets underway. 

She discussed strong auction results, key market trends, and an exciting upcoming event that showcases the strength and talent within New Zealand’s wool industry.

The wool market has kicked off the year with robust results across the board. Rachel highlighted that both North and South Island auctions have seen intense competition among buyers, driving prices for crossbred fleeces to eight-year highs.

In the North Island, the strong wool indicator jumped by 21 cents during the first sale of the year and rose again in subsequent sales. Some crossbred fleece prices have exceeded the $4 mark, reflecting strong demand. Similarly, the South Island market recorded a 15-cent rise in its strong wool indicator.

Rachel emphasised that this growth is underpinned by a supply and demand story. Declining sheep numbers and reduced wool volumes are creating a competitive environment among buyers, with exporters striving to fill orders amidst strong global demand.
 
Several factors are contributing to the current price gains:

• Low wool supply: Wool stored in sheds from earlier shearing is still making its way to market, creating temporary supply constraints.
• Currency advantage: The New Zealand dollar is at its lowest level against the US dollar since 2009, boosting demand from international buyers.
• Export markets: India remains a significant importer of New Zealand wool, though price sensitivity may limit new business at current levels. Other key markets, including the UK and Australia, are on a similar upward trajectory.

Rachel advised wool growers to consider locking in forward contracts to secure these favourable prices while they last.

World Record Shearing Attempt
Beyond the wool market, Rachel shared exciting news about a world record shearing attempt happening this Monday 20 January. Jamie Skiffington will aim to set a new 9-hour lamb shearing record at Waewaepa Station, with the event live-streamed by bidr.

Rachel expressed her enthusiasm for the event, noting that bidr’s previous live stream of a shearing record attempt saw record-breaking site traffic. She applauded Jamie’s dedication, describing him as an athlete whose intense training and preparation reflect the commitment of those in the wool industry.

As we progress into 2025, the wool market shows promise, with strong demand and competitive pricing bringing optimism to growers and industry professionals alike. Rachel remains hopeful that these trends will continue and encourages growers to stay proactive by communicating with their reps and exploring forward contract opportunities.