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Prices dropped at this week's South Island wool sale in Christchurch, where mainly crossbred wools were offered.
There was continued grower resistance to selling at market levels, which had resulted in the steadily growing unsold volumes, PGG Wrightson Wool's South Island sales team said.
The Asian market was still quiet and orders were largely for prompt deliveries.
Crossbred fleece, 31 to 34 micron and including hogget wools, was 1%-2% cheaper on a limited offering, while 35 micron and stronger was 4%-6% cheaper. Crossbred second-shear was down 3%-4%. Lamb's wool was down 5%-8% and broader-micron wool was most affected. Crossbred oddments were 5%-9% cheaper.
Rabobank's latest Agribusiness Monthly said the optimism seen in the wool market last month was short-lived. The price upturn created by a weakening New Zealand dollar was dampened when the currency rose.
Export data for the third quarter of 2016-17 showed the value of exports slumped by 29% to $130million in the three months to the end of February.
Wool was now New Zealand's 17th-most valuable commodity export, falling from 14th at this time last year.
Many large traders had fulfilled their short-term shipment requirements, as they foresaw buying activity slowing in wool markets globally.
Australian wool prices had fallen from the 29-year highs seen in March but were still well above trend, the report said.
A range of prices
- Bendigo Partnership (Waikouaiti), 10 bales crossbred second-shear AA, 38.3 micron, 86.2% yield, 334 greasy, 387 clean
- Everett Farm Ltd (Alexandra), four bales fine crossbred hogget AA, 36.6 micron, 74.3% yield, 284 greasy, 382 clean