Quality wool drives up prices

Top spinners wool lifted the most in the largest offering of 2600 bales of New Zealand merino wool presented so far this season at sales in Melbourne this week.

The best spinners wools offered by the New Zealand Merino Company (NZM) improved 5 per cent from last week when another large offering of 2500 bales was presented. Good wools across the micron selection increased 2-3 per cent and poorer types rose 1-2 per cent.

NZM commercial manager Keith Ovens said the quality of the wool drove up prices, combined with buyer confidence lifting to get orders through which generated competition.

‘‘Overall it was a really good sale with only 7 per cent passed so a good clearance. It’s what happens in commodity markets – we have two to three people coming into the market and that creates more competition.’’

Among the buyers was new entrant, Dynon Wools, an Australian company buying 15 to 16 micron fleece for European clients.

Italian mills bid strongly and the feature of the sale was merino wool presented by The Haycocks from Wairau Valley.

Ovens said The Haycocks wool received a category premium above any price seen this season with its 17.8 and 17.9 micron bales about $3-$4 a kilogram above the market rate.

He said the overall price of just above $11/kg, including bellies and pieces, was similar to last week except this offering contained more hogget wool.

‘‘So the overall quality was slightly down but the improvement in the price kept that up. Hogget wools had a lift in the market.’’

Among the wool sold was bales from 28 per cent of last week’s offering passed in after failing to meet reserve prices.

Oven said farmers had been justified in standing up to the market last week. Farmers were rewarded for their work in preparing wool, he said.

The next New Zealand offering to go to Melbourne is in three weeks,