Tuesday, 21 November 2017 07:55

Wool bouncing back?

Written by  Pam Tipa
Wool exporters say China has been back in the market in recent weeks. Wool exporters say China has been back in the market in recent weeks.

Wool exporters say China has been back in the market in recent weeks.

But the jury is out on whether it will continue, says Wool Services International chief executive John Dawson. Or will they take a breather and then come in later?

China can be in and out – very active, then no activity at all, Dawson told Rural News.

“It is difficult sometimes to pick the timings… but there has been more activity probably for the last six weeks.”

That’s clearing both backlog and new wool. The strong wool price indicator is probably only 10-15 cents/kg off its low.

But the Chinese tend to operate out of New Zealand in the finer crossbred end of 30-36 micron, Dawson says. That area has shown more life.

“So it is better but it is early days in the season. The weight of wool comes on the market January to April. Stocks are still being held by brokers, farmers and exporters. So as usual it is not a totally clear picture.

“We just hope the market continues. We monitor that all the time and try to do our best to keep things moving.”

But ultimately those decisions will be made offshore and there is no clear trend at this stage.

“So it is more positive. Obviously the last two years have been bad, especially price-wise. But you’ve got to be a bit wary about making brave predictions. You’ve got to see the evidence first.”

CP Wool national wool manager Simon Averill agrees that sales to China are picking up and other markets are holding.

“It would be fair to say the stockpiles of hold wool are now moving; we are selling more than we are receiving,” he says. 

“We could see some volatility in the market over the next period as larger volumes come on stream. This combined with the price-sensitive Chinese buyers could cause some wool types to be in demand at the expense of other wool types.”

More like this

Wool market firms

The double auctions in the South and North Islands attracted more interest yesterday.

Wool sale steadies

The South Island sale of 8565 bales comprising a wide range of wool types saw good support with 78% of the offering selling. 

South Island wool bounces

Despite a strengthening NZ dollar, the varied selection at this week's South Island auction attracted strong support.

Wool market steady

The North Island wool auction received revived support this week with an improved 81% of the 5700 bales selling.


Dairy conversion - Otaki style

Near the Horowhenua town of Otaki, dairy conversion has taken on a whole new meaning. It’s not a case of converting sheep and beef farms to dairy farms, rather it’s a case of just converting old dairy sheds to country style tourist accommodation. Reporter Peter Burke visited two such conversions by two pretty special and creative women.


Bringing flat batteries to life

Given the absence of power outlets in many remote buildings on New Zealand farms, there’s every chance of ending up with a flat battery when away from civilisation for an extended period.

Kuhn bolsters mower range

Kuhn has bolstered its mower conditioner range with the addition of two rear mounted/ vertical folding models with a 3.10m working width.

2020 property market closes on a healthy note

Data release by the Real Estate Institute of New Zealand (REINZ) shows there were 175 more farm sales for the three months ending December 2020 than for the same period in 2019.


Machinery & Products

Good growth year for Claas

While many sectors of the agricultural machinery were hit by the ravages of Covid-19, the effects of the pandemic did…

Green machine frugal on fuel

According to the industry respected independent DLG PowerMix test, John Deere appears to be the best choice of tractor for…

App takes pressure off

TRS Tyre & Wheel, owned by Trelleborg Wheel Systems, has introduced the TLC Plus App to the New Zealand market.

New MF 5S series arrives

Just before Christmas, Massey Ferguson quietly released details of the successor to its popular MF 5700S range in the shape…

» The RNG Weather Report

» Latest Print Issues Online

The Hound


Your old mate reckons the nomination of the New Zealand Dairy Industry Awards (NZDIA) management team as a finalists in…

Good riddance!

The Hound reckons 2021 is off to a rollicking start with news that professional whinger and anti-farming drone Martin Taylor…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter