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The record books are being dusted off to see if strong wool prices overtake auction highs of the late 1980s.
Crossbred clean wool prices have more than doubled this season at the national auction in Christchurch to sweep past the 2011 peak of $7 a kilogram.
Online sales have raised standard crossbred wool to mid-$7/kg levels and at least match the previous high of nearly 40 years ago after inflation adjustment calculations.
Supplies were so tight that the Christchurch auction, due to be held on June 18, was cancelled as there were only 2000 bales.
The last sale of the season will have a larger offering as a result of nearly 11,800 bales, including the first bales from newly-shorn clips, on June 25.
Major Australian buyers have indicated they will be flying in to secure finer wools.
PGG Wrightson auction manager Dave Burridge said wool was having its day in the sun again and he could not remember when crossbred prices were this high.
"Back in 2011 we had a period of about a month when prices were just north of $7/kg before dropping again and then in 2018 they were quite good at $6.50/kg to $6.60/kg and dropped away. So these prices at $7.50/kg to $7.60/kg for good colour fleece are certainly at a new level. Inflation adjusted they would match a period in the late 1980s when they were very good and I recall they were around that $6.50/kg."
He said "insatiable" demand had risen from low wool supplies and strong bidding was expected again for the season’s final sale, despite the large offering.
The previous auction was cancelled because there was not enough wool to hold the sale, he said.
"Demand has well outstripped supply so we are seeing quite a seller’s market and the quantities of wool just haven’t come through as expected and the last six months we have had almost 100% clearances from wool auctions which is something we haven’t seen for decades. The price for most wool types, from the strongest crossbred wools to about 20 micron wools, have doubled within a season which is something I haven’t seen in my 45 years of business."
The new wool was strong in quality with good colour, tensile strength and length from a strong growing season in many regions through spring to early autumn.
Intense competition in the sale room from a shrinking flock reducing wool volumes has exporters scrambling to fill contract commitments.
"We have not seen a time when our wool stores have been as empty as they have been."
Mr Burrdidge said the question was if the rapidly increased prices be passed on at a sustainable level from the farm to market.
"When ever we have seen spikes in the market as quick as they go up they come down, but over the past six months this is something we haven’t experienced before. This is in part to the price of petroleum-based textile fibres also increasing. But certainly the wool has got a march on at the moment and the Chinese and Indians cannot get enough of it."
The dollar has helped by trading consistently at just under 60 cents against the United States dollar and about 82c against the Australian dollar.
Mr Burridge said natural fibre promotions, backed by responsible wool standards for traceability and animal welfare, were starting to connect to buyers and industry people.
The June 11 sale was initially rostered for 10,300 bales but only 6500 bales ended up being offered with 99% of them sold.
Prices rose again by 8% with good style crossbred fleece making $7.40/kg and poorer types $6.90/kg.
This week’s auction will include the first of the new season’s mid micron wool and early merino lots, mainly from Canterbury and Marlborough.
As the Australian market has continued to firm, mid micron prices are expected to increase another $1/kg from June 11 to bring them to near record levels.
Mr Burridge said the lower wool volumes was a global movement with the United Kingdom, South African and Australian markets at high levels.
