Wool report: Good wool is still in demand

File photo / Bevan Conley

Content brought to you by PGG Wrightson

Rowena Duncum from The Country took a close-up look at the wool market with Rob Cochrane, South Island Wool Procurement Manager with PGG Wrightson, based in Christchurch.

Duncum asked about a recent North Island wool auction in Napier.

Cochrane said it was an interesting day with about 7000 bales offered, mainly second shear wool as seen in the North Island, all good colour wool, drawn from right across the Island, apart from the far north.

The market could be described as buyer's favour and didn't go as well as they'd hoped, he said.

Approximately 18 per cent passed in but Cochrane emphasised there was still good demand for good wool.

Duncum asked about the North Island in general.

Listen below:

Cochrane pointed out there was not a lot of shearing at the moment as lambing goes on - although a lot of trading hoggets were being shorn.

It was pretty wet with a lot of mud which will cause some concern going forward, he said.

Generally, it was reasonably quiet, Cochrane said.

The South Island was also really wet, Duncum asked if that would affect anything.

Cochrane reckoned the situation was similar to the North Island with a lot of mud.

There was some very good pre-lamb fleece coming through off cross-bred sheep - particularly from Otago. They'd been making some very good premiums, Cochrane said.

A lot of merinos and half breeds being shorn - some superb wool coming off those -and a lot of that wool was going into contracts for the northern hemisphere, he said.

Duncum asked about the global perspective, which Cochrane said was not bad, although shipping and transport were always a problem.

Europe seemed to be slowing down which could be a reflection of the economy and, inflation - all the things New Zealand was facing, he said.

Cochrane reckoned there probably wasn't the discretionary spending there once was.

Asia and China, in particular, were pretty quiet but India was becoming a major destination for New Zealand wool, accounting for 23 per cent of New Zealand wool exports, he said.

Rowena wondered if China may make a comeback soon.

Cochrane certainly hoped they do.