Wool report: The only way is up for the market

Photo / Alex Braae )@awbraae)

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This week The Country's Jamie Mackay is joined by PGG Wrightson's Bloch and Behrens General Manager, Palle Petersen, to take a look at the wool market this month.

According to MPI, New Zealand's food and fibre exports were forecast to exceed $50 billion NZD - however, there was no mention of wool exports, Mackay said.

Wool was at an all-time low during last year's lockdown with prices dropping below a dollar per kilo.

Mackay said even with the price increase over the past 12 months, it was not enough to sustain the wool market.

Although Petersen agreed, he said statistics showed market prices were trending up.

Travel and export restrictions due to Covid-19 will start to ease and the market should pick up again, particularly on the commercial side.

Recent wet and humid weather conditions had started to impact wool quality, Mackay said.

Petersen agreed and said the post-Christmas period would be a struggle.

Although the quality might not be there, if there were a few good coloured clips then this should fetch a premium price, Petersen said.

Listen below: