The strong wool sector has been through a tough run, but signs of real recovery are beginning to emerge. 

Speaking with Jamie Mackay on The Country, Rachel Shearer from PGW Wool shared the latest auction results, market drivers, and how the new national auction format is helping create momentum.

Market lifts across all wool types
Rachel noted that while the sector still has a long journey ahead, the improved pricing is meaningful for growers. 

South Island standard default types have risen 27 percent year on year. The well known 37F2D line, which sold at 370 cents clean a year ago, reached 473 cents clean under the hammer this week.

For mid micron growers, the improvement is even more striking.

“Growing up in North Canterbury with Corriedales, that full length 28 micron wool was $4.60 last year. Yesterday it sold for $8. That’s a 74 percent lift. There’s not a huge volume of it around now, but it’s still a great sign,” Rachel said.

Oddments, often overlooked by growers, have also surged. Last year they were averaging $1.48. This season they’re sitting around $3.86 — a lift of 160 percent.

At the other end of the spectrum, the final offerings of Merino wool for the season are up 25 percent on the same time last year.

“Right across the board, we’re seeing positive movement,” she said.

China remains active as global supply tightens
Rachel confirmed that China continues to purchase actively at current prices, despite its reputation for unpredictable buying patterns.

“Globally, sheep numbers are declining. Buyers know they need to secure wool to meet their forward sales commitments. Classic supply and demand is kicking in,” she said.

A slight mid month dip has already corrected, and with North Island peak shearing well underway, the next wave of supply will begin reaching the market by mid January.

A new auction system trials bringing buyers together
Jamie also asked Rachel about the new alternating national auction system, now on trial between Christchurch and Napier.

“It’s working well. We’re seeing more spirited bidding and more buyers in the room. Everyone viewing and appraising wool under one roof is making a real difference,” Rachel said.

Trials will continue over the next few sales, including in the North Island, with both islands’ wool included in each catalogue.

Positive signs heading into 2025
While the sector isn’t declaring victory yet, Rachel remains encouraged.

With firmer prices, broader buyer participation, and improved competition in the sale rooms, the tone for the months ahead is more optimistic than it has been in years.