Rising Asian demand for red meat was putting pressure on a contracting global supply, said the Ministry of Primary Industries. Photo / APN
New Zealand wool prices have firmed over the last few weeks and have performed strongly over the last year, driven by a wool shortage, ASB Bank said its latest issue of Commodities Weekly.
The bank said wool had been a "quiet achiever". Wool prices (35 micron) over the last four
weeks have averaged 5 per cent higher than the four weeks prior. Moreover, compared to a year ago, wool prices are around 15 per cent higher, it said.
Driving wool prices higher has been a shortage of wool, with flocks here and in Australia under pressure.
Early this month, Beef and Lamb NZ estimated that in June the total number of sheep had fallen to under 30 million. In Australia, wool exports are expected to fall by around 7 per cent over the season ahead. "With little sign of sheep numbers recovering any time soon, we expect wool prices to remain firm over the season," ASB said.
