Low orders, strong dollar soften wool market
The strong dollar, restricted off-shore interest and high volumes of one wool category on offer this week saw local prices ease.
Wool markets remain steady with the latest sale seeing increases of 1 to 2% overall, says NZWSI general manager, John Dawson.
The sale of 6,617 bales was a good result, he says, with an offering of 52% Coarse Crossbred Early Shorn and Second Shear types.
There was good demand for shorter Second Shear types 2 to 3 inch 32 to 35 micron as buyers bid to cover Chinese orders.
The trade-weighted indicator was little changed from the last wool sale on 16th July.
Compared to the South Island sale on 16th July, Fine Crossbred Early Shorn and Second Shear types 3/5 and 3/4 inch were 1% dearer.
A limited offering of Coarse Crossbred Fleece wools were up 1%. Coarse Crossbred Early Shorn and Second Shear 37 to 39 micron 3/5 to 2/4 inch were 1% dearer, while 2/3 inch were firm.
A nominal offering of Crossbred Combing Oddments were in Sellers Favour, while good colour Clothing Oddments increased by 2% with poorer colour remaining firm.
Competition was widespread with China dominating.
Next sale on 30th July comprises approximately 8,000 bales from the South Island.
Federated Farmers says it is cautiously welcoming signals from the Government that a major shake-up of local government is on its way.
Ashburton cropping and dairy farmer Matthew Paton has been elected to the board of rural services company, Ruralco.
The global agricultural landscape has entered a new phase where geopolitics – not only traditional market forces – will dictate agricultural trade flows, prices, and production decisions.
National Lamb Day is set to return in 2026 with organisers saying the celebrations will be bigger than ever.
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The chance of a $10-plus milk price for this season appears to be depleting.

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