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27 July 2023
Wool Street Journal
Market Commentary
Company News

Market update: Values increasing for premium crossbred wool types

Top quality well-prepared crossbred fleeces continue to command substantial market premiums.

Global demand is driving values for these types to levels not recorded since December 2016, with the premium on the best presented wool up to $1 greasy above poorer quality, less well prepared wools. Preparation is key, with only the best prepared wools attracting these premiums.

Although remediation work is proceeding, the damage to the Awatoto wool scour wrought by Cyclone Gabrielle in February is posing a daunting challenge to the New Zealand wool supply chain. Until the plant can be re-commissioned, which from best estimates is scheduled by the end of the year, the capacity to wash any North Island wool remains challenging.

Based on their performance on the Australian market, mid micron values are not encouraging. Quantities of mid micron wool are being stockpiled around the world, indicating this issue will not be solved in a hurry.

Shearing has commenced for merino flocks throughout the South Island. A significant quantity of this wool is already committed via long term supply contracts, which provides growers with surety of price.

Demand growing for organic wool 

Via our North American partner Jeffco, PGG Wrightson Wool recently advised growers of organic wool that rising demand for their product will support a price increase. 

Organic wool forward contracts are available now for delivery throughout the 2023/24 season. To secure these prices for your clip, please contact your PGG Wrightson Wool Rep.

Wool in Schools back on the road

In partnership with The Campaign for Wool, PGG Wrightson has supported the Wool in Schools programme since it started in 2015.

Wool in Schools comprises two modified shipping containers, one in the North Island and one in the South Island, which visit primary and intermediate schools with educational resources aligned to the school curriculum to teach children about the special qualities and sustainable properties of wool.

Recently refurbished, the Wool in Schools mobile wool sheds are now back in action around the country. 

Primary Production Select Committee given wool sector briefing

Recently, I presented to Parliament’s Primary Production Select Committee in Wellington. I explained the wool supply chain, gave an overview of PGG Wrightson Wool’s different commercial activities, and explained why the company and others within the sector believe an umbrella organisation incorporating various wool industry organisations would be beneficial. 

To watch the presentation, see here , starting at 2hr 14min.

PGG Wrightson Wool hosts Agri Venture for high school students

An enthusiastic group of 25 year 12 students from throughout the country visited the PGG Wrightson Christchurch wool store recently. Motivated to explore careers in agribusiness, members of the group, coordinated by Lincoln University, were given a guided tour of the store, and an insight into the future potential career options that the fibre sector could offer. 

Grant Edwards, General Manager, PGG Wrightson Wool

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