China is the largest buyer of New Zealand wool, accounting for 52 per cent of the $794 million in exports last year. Photo / NZME.
Wool prices have recovered some lost ground and are expected to remain steady throughout the year, says ASB Bank in its latest commodities report.
Coarse wool prices (35 micron) over the past four weeks have averaged about 5 per cent higher than the corresponding four weeks three months ago, the
bank said.
Within the types, lambs' wool has been a standout. Prices reached as high as $6.65/kg in March. April prices remain strong and, at $6.30/kg, are 22 per cent higher than at the same time a year ago. "More broadly, we expect wool prices to track largely sideways over the year," ASB said.
ASB said New Zealand wool supply remained tight as the drought had reduced the national sheep flock and said a similar dynamic was playing out across the Tasman.
"All up, with tight supply likely offsetting weak demand, we expect the net effect is likely to be neutral for prices," the bank said. "Or, in other words, we expect prices to largely track sideways over the year."
