Top wool advocate bales out
The conversion of productive farmland into trees has pretty much annihilated the wool industry.
This is despite a slightly easier New Zealand dollar compared to the last sale on 15 October.
The weighted indicator for the main trading currencies came down 0.85 percent. Of the 8,290 bales on offer, 70% sold.
Ching advises that the tightening of the Chinese economy is restricting new business with exporters covering for old orders only, with quota issues restricting concluding new contracts.
Compared to 8th October sale;
Merino Fleece 17 to 18.5 and 22 to 23.5 microns eased 2 to 6% with pressure on 19 to 19.5 microns increasing levels by 4%.
Mid Micron wools were neglected with 24 to 29.5 microns reducing by 8 to 9%.
Compared to 15th October sale;
Fine Crossbred Fleece 31 to 32 microns were 11 to 13% cheaper.
Fine Crossbred Shears 32 to 35 microns were down 1.5 to 3.5%.
Full Fleece coarser than 36 microns were nominally up to 1% easier.
Coarse Shears were 1.5 to 2% down.
Short oddments were 3 to 5% cheaper.
Limited competition with old orders for China dominating the finer wools and Australasia supporting the coarser sector. Limited support from Western Europe, Middle East, United Kingdom and India.
Next sale on 29October comprises of approximately 5,100 bales from the North Island.
