The New Zealand wool market saw North Island operate this week for the first time since 19 March, with an offering of 6,607 bales. Of these, 4,241 were sold, registering a clearance rate of 65% as against 76% in the previous trading week. Prices in New Zealand dollar terms fell 24% or 59 cents to 190 NZ dollars and down 17% or 24 cents at 117 US cents.
Despite the heavily reduced market demand and anticipated drop in auction prices, sales showed a good temperament and resilience to contain any drop as small as possible. Of all the wool on offer, 64% of growers met the market and 36% was passed in. The most competition was seen from China and Australasian mills, with very little coming from Europe, the UK and Southeast Asia.
The selection consisted of 13% fine crossbred, 45% coarse crossbred, 33% lambs fleece and 9% oddments.
Among the buyers, the major ones were NZWSI/JSB (1,415), Masurel (1,150), and Fuhrman (1,100), among others.
Price movements in North Island compared to the South Island sale of 19 March were as follows: Fine crossbred early shorn good style were 10% cheaper, coarse crossbred fleece average style were 15% cheaper on limited offering, and average-to-poor style were also 15%. Coarse crossbred early shorn and second shear of 3/5 inches were 10% cheaper and those of 3/4 inches were 15% cheaper. Meanwhile, 2/4 inches were 25% cheaper and 2/3 inches were 20% cheaper. Oddments were up to 25% cheaper and crossbred lambs up to 20% cheaper.
The next auction will be held in South Island with an offering of 7,000 bales on 28 May.
