The coarse crossbred indicator rose 39c to $5.44/kg clean, levels not seen since late last year, NZWSI marketing executive Malcolm Ching told Rural News.
While the weighted currency indicator was back 1.17% compared to last week's North Island sale, NZWSI says that was not the driver.
Rather a limited offering combined with good demand from overseas and exporters caught in the middle with shipments to fill drove prices up by up to 10%.
"If exporters are oversold they've no choice but to pay whatever the price is [at auction] to meet their contracts."
Ching says the reduced supply is partly due to wet weather disrupting shearing patterns and partly less wool being available for auction. In turn the reason for the reduced offering is split between a smaller national flock and more wool moving direct to market or at least scours through companies like WSI and Wools of New Zealand.
"Saying that, there's still a lot of pent-up demand for New Zealand wool out there. I think these levels are likely to be sustained for some time."
A smaller than expected volume offered for next week's auction, again in the South Island, of 5300 bales, also contributed to the higher prices. The next North Island sale is on August 14.
In a 96% clearance of today's 8300 bale offering, mid micron fleece was 7 to 11% dearer, fine crossbred fleece 5-7% up, and fine crossbred shears 7-10% stronger. Coarse crossbred full fleece was 4.5-6% firmer.
Longer coarse shears lifted 7.5-8.5% while 3-4 and 2-4 inch shears gained 10-12%. Shorter shears were up 2% but oddments rose 6-10%.
Well spread competition with China, Australasia and Western Europe principals, supported by India, Middle East and the United Kingdom.
Next sale on 7th August comprises only 5,300 bales from the South Island, down 38 percent on the rostered volume.
PRICES LEAPT at today's South Island wool sale driven by market shortage and strong demand, says New Zealand Wool Services International.
Popular Reads
South Otago farmer balances family, farming and drought challenges
Balclutha farmer Renae Martin remembers the moment she fell in love with cows.Less Red Tape, More Markets: NZ exporters get certainty
'Common sense' cuts to government red tape will make it easier for New Zealand to deliver safe food to more…Sir Lockwood Smith: Use academic freedom with great care
Academic freedom is a privilege and it's put at risk when people abuse it.John Deere technician's record hat trick
Whangarei field service technician, Bryce Dickson has cemented his place in John Deere’s history, becoming the first ever person to…Featured
Rural women shaping New Zealand’s sustainable horticulture future
As New Zealand marks International Day of Rural Women today, women from across the horticulture sector are calling attention to the crucial role they play in building a more sustainable, inclusive and climate-resilient industry.
Board upheaval at PGG Wrightson
Listed rural trader PGG Wrightson chair Garry Moore and his deputy Sarah Brown have been voted out by shareholders.
Leah Prankerd: A passion for dairying and farmer support
It was love that first led Leah Prankerd to dairying.
DairyNZ appoints Dr Jenny Jago to key science role
DairyNZ has appointed Dr Jenny Jago to a newly created leadership team role - science partnerships & impact advisor - as part of a strategic refresh of the organisation's science leadership.
Editorial: Right call
OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.
From Calf Shows to Semex NZ: Rachel Cox’s dairy journey
When I interview Rachel Cox, she is driving - on her way to her next meeting.
National
South Taranaki rural health hub boosts workforce
As the first of a new series of interprofessional rural training hubs opened in South Taranaki late September, Rural Health…Owen Jennings to represent NZ at Global Livestock Forum
Farming leader and former MP Owen Jennings will represent New Zealand at the II Congreso Mundial de Ganadería Sostenible (II World…NZ meat industry loses $1.5b annually to non-tariff barriers
Wouldn't it be great if the meat industry could get its hands on the $1.5 billion dollars it's missing out…Record final milk price for Miraka suppliers
Farmers supplying milk to Taupo-based processor Miraka are getting a 2024-25 season base milk price of $10.16/kgMS.Pig farmers respond to new welfare standards
Pig farmers are cautiously welcoming new animal welfare standards announced by the Government last week.Machinery & Products
Claas unveils next-generation large square baler concept ahead of Agritechnica 2025
Innovation awards at international agricultural events are always on the wishlist of manufacturers.John Deere launches next-generation round balers
John Deere has released details of its next generation of fixed and variable chamber round balers, offering advanced automation for…European agricultural machinery market faces challenges ahead of Agritechnica 2025
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment.…John Deere Technician of the Year Awards 2025: Whangārei’s Bryce Dickson makes history with third win
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make…JCB unveils new Fastrac 6000 Series tractor
JCB has released details of its new Fastrac 6000 Series, filling the gap between the current 4000 Series (160- 240…» Latest Print Issues Online
The Hound
Quid prod quo?
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
Deadwood
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…