Wool sales show buoyancy ahead

WELLINGTON - The new president of the national Woolbrokers' Association, Cedric Bayly, says latest wool sales have confirmed the trend for wool prices to improve.

Mr Bayly, of Napier-based stock and station agent Williams and Kettle, said it was pleasing to see strong and stable auction prices at a time when woolgrowers had many industry issues to consider. These included the vote on the McKinsey recommendations for improving profitability.

Sales in both islands on Thursday saw stronger crossbred wools fetching the best prices, which Mr Bayly said reflected the steady demand for full-fleece and mid-length shears. Prices for these types were right up to market level and, in some cases, better than at the last wool sales, he said.

While there was an easing in the prices for finer crossbred types, Mr Bayly said this had been anticipated, due to lower demand from China, which was resetting import quotas.

Mr Bayly said the Woolbrokers' Association's regular sales - most of them through the auction system - were stable and running well, and handling about 700,000 bales of wool each year.

- NZPA