The new wool season has opened on a disappointing note for crossbred wool growers, despite a ``superb'' offering of pre-lamb wool.
In the first South Island sale of the 2018-19 season last week, prices declined across all crossbred types, Roger Fuller, of CP Wool, said.
Overseas markets were very quiet, which concerned exporters and brokers, and passings were at levels not seen for many months.
Growers were taking a position in the market, reserving wool and endeavouring to keep prices at a reasonable level, Mr Fuller said.
PGG Wrightson Wool's South Island sales team said a good selection of mid-micron and a small offering of fine wool continued to attract strong demand and achieved almost a full sale clearance.
Rabobank's latest Agribusiness Monthly report said Chinese demand would be the key driver for the crossbred market this season.
Positively for the new season outlook, clearance rates in New Zealand had lifted the bales sold at auction about 37% compared with last year, helping alleviate some of the stock pressure accumulated in the 2016-17 season.
Supporting that was the 20% lift in New Zealand's wool exports for the season to May 2018. Although a big year-on-year gain, export volumes still trailed 2015-16 (June-May) shipments by 14%.
Increased exports, in combination with steady production at historically low levels, should help to support price improvement, the report said.
Wool finer than 28 micron had performed strongly and offers for both 27 and 28 micron wool made some strong gains in the later South Island sales last season. The market in Australia was ``electric'' through May and June, it said.
A range of prices from the South Island sale.-
Glenspec Holdings (Ranfurly), 15 bales medium halfbred AA, 25.1 micron, 75.7% yield, 1293 greasy, 1708 clean; Hand Farming Ltd (Palmerston), four bales halfbred lambs AA, 26.2 micron, 76.5% yield, 833 greasy, 1089 clean; N R and J A Neehoff (Outram), 48 bales crossbred AA, 35.5 micron, 78.8% yield, 281 greasy, 357 clean; Hunter Hills Station Ltd (Kurow), 19 bales fine crossbred 2-tooth A, 35.8 micron, 83% yield, 282 greasy, 340 clean; Creekside Farms Ltd (Ranfurly), 38 bales Perendale second-shear AA, 38.3 micron, 78.5% yield, 255 greasy, 325 clean; A J and C E Wither Ltd (Outram), 28 bales crossbred AA, 33.6 micron, 75.5% yield, 330 greasy, 437 clean; Est E T Beattie and Son (Outram), 33 bales Perendale 2-tooth AA, 33.9 micron, 80.3% yield, 348 greasy, 433 clean; E N Hakkore Partnership (Ranfurly), two bales merino AA, 17.8 micron, 69.8% yield, 1961 greasy, 2809 clean; D D McGregor (Otago), 40 bales crossbred AA, 37.6 micron, 80.5% yield, 289 greasy, 359 clean; Attadale Station (Otago), 52 bales crossbred AA, 37.9 micron, 78% yield, 273 greasy, 350 clean; Merryvale Farm (Otago), 34 bales crossbred, 36.7 micron, 77.9% yield, 274 greasy, 352 clean; Switzers Hill Ltd (Gore), 29 bales Perendale, 36.9 micron, 81.4% yield, 288 greasy, 354 clean; H P Joyce (Otago), 16 bales crossbred second-shear, 39.2 micron, 79.6% yield, 261 greasy, 328 clean; P and G Cooper (Otago), 17 bales crossbred second-shear, 38.6 micron, 77.9% yield, 257 greasy, 330 clean.
