South Island wool sale prices suggest market recovering

After weeks of declining prices, the wool market appears to have "found its bottom" and is beginning to turn in a positive direction, Roger Fuller, of CP Wool, says.

Prices improved for all types at this week's South Island wool sale and good demand for finer lamb's wool and coarser lamb's wool over 100mm staple length were highlights. Sound fleece types were also in good demand.

"We are still not out of the woods yet but, because of low volumes coming forward due to growers holding off, it is giving the market a chance to recover in a positive direction," Mr Fuller said.

PGG Wrightson Wool's South Island sales team said buyers had to secure volumes for immediate processing, with new business being written from the Asian sector.

With continued strong prices for fine wool in Australia, the outlook for wool growers, especially of finer wool, looked more positive than it had for some time.

A range of prices. -Glen Ayr Trust (Otago), 38 bales crossbred AA, 36.5 micron, 80.5% yield, 323 greasy, 401 clean; Inch Valley (Otago), nine bales crossbred AA, 39.1 micron, 79% yield, 334 greasy, 423 clean; J D Tweed (Otago), 19 bales crossbred AA, 36.4 micron, 75.7% yield, 316 greasy, 417 clean; 4 Rivers Farming (Otago), 25 bales crossbred lambs AA, 29.8 micron, 84.4% yield, 345 greasy, 409 clean; Bellevue 2002 Ltd (Waikouaiti), 37 bales Perendale AA, 36.2 micron, 79.4% yield, 324 greasy, 408 clean; Delmont Ltd (Clinton), 32 bales Perendale AA, 35.8 micron, 77% yield, 308 greasy, 400 clean.