In the latest The Country radio interview, Rachel Shearer, our General Manager for Wool, provided a detailed update on the wool market, highlighting trends in both the North and South Islands.

The North Island wool market has experienced a positive upward trend, with the market indicator rising for the fourth consecutive sale. Last week, the strong wool indicator increased by $0.21, bringing prices for crossbred shears—especially those with good colour and a 3-4 inch length—to levels not seen in the past seven years. The rise in prices is attributed to a classic supply and demand scenario, with a significant reduction in sheep numbers leading to a lower wool flow. As a result, buyers have been proactive, with wool selling quickly both during and after auctions.

In addition to the rise in crossbred wool prices, oddments prices also surged by around $0.50 compared to the previous week. Although there was a slight correction in the South Island auction, the North Island market remained strong, with buyers scrambling to fill orders as the wool supply remains tight.

In the South Island, the crossbred market continued its positive movement, with the strong wool indicator rising by $0.12. However, mid-micron and finer wools experienced more resistance, with subdued bidding during the auction. Despite this, better-quality lots that were well-prepared still found a solid market, indicating that high-quality wool remains in demand, even in more challenging segments.

The wool market is currently benefiting from a clear supply and demand imbalance, with a noticeable decline in sheep numbers contributing to a low wool flow. As a result, wool volumes are down compared to previous years, and buyers are increasingly competitive, eager to secure wool. This trend is likely to continue as the market adjusts to the reduced supply.

Pictured: The Gibson Family celebrating at the Malvern Downs 100-year anniversary lunch.

A special mention was made of Malvern Downs, where Bill and Robbie Gibson and their families recently celebrated 100 years of wool production at their Tarras property. Known for producing high-quality merino wool, the Gibson family's commitment to excellence is a testament to the dedication and hard work that has shaped New Zealand's wool industry over generations.