Wool prices crash at latest sales with lamb wool prices near 10 year lows

Lamb wool prices have dropped so low that some farmers won't recover the costs of shearing and getting it to market

Rural News

Lamb wool prices have dropped so low that some farmers won't recover the costs of shearing and getting it to market

27th Jan 17, 4:22pm by Greg Ninness

Crossbred wool prices fell sharply at the latest auctions with lambs wool prices falling to near 10 year lows as Chinese buyers sat on the sidelines and the high NZ dollar took its toll.

The majority of lambs wool offered for sale was passed in at the latest North Island sale which is a particular worry with many lambs still waiting to be shorn.

It is feared that prices are now so low that many farmers will be unable to recover the costs of shearing, packing, cartage and selling and will be forced to sell at a loss.

At this week's Napier wool sale prices for lamb's wool were 10-20% down on the previous week's sale and prices were generally softer for all wool types.

The full reports from the latest wool sales are available by clicking on this link.

Wool indicator prices

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Source: refer to schedule page

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6 Comments

by CJ099 | 28th Jan 17, 9:28pm 1485592112

Key point: "high NZ dollar took its toll". We have to get the NZD lower it's killing us, the only way to do that is to curb house prices (Mainly Auckland). And the only way to successfully to do that for the long term is a Foreign Buyer Tax that most of the more popular cities have already adopted. How else can we expect to control our own markets??

by Andrewj | 28th Jan 17, 9:34pm 1485592483

"Lower world oil prices in recent years have lowered polyester prices and increased its price-competitiveness."

Chinese cotton imports are sagging, as the government floods the market with its accumulated inventories, leaving less room for importer supplies.

China imported 54,900 tonnes of cotton in November, down 35% year-on-year, the China Cotton Association said.

Chinese cotton imports so far this year are running at 750,900 tonnes, down 42% from last year.

Stock draw-down

"Reduced low-tariff import quotas and sales from state reserves are to blame," said Commerzbank.

The Chinese government is drawing down the huge stocks accumulated through a price-support mechanism.

The government has also reduced the amount of low-tariff import permits it issues.
http://www.agrimoney.com/news/chinese-cotton-imports-tumble-as-mills-tu…

by Crazy Horse | 29th Jan 17, 9:28am 1485635281

Answer is easy ....NZ is an agricultural nation and these guys need our help, so instead of smug, self righteous "baby boomer" and overseas residential property investors living off the taxpayers tit with their tax refunds from their mortgage interest payments (subsidised by hard working kiwis paying stupid amounts of rent, especially in Auckland) stop this ridiculous tax break that the banks also love ...and put forward these funds to help the farmers !

by PocketAces | 29th Jan 17, 9:43am 1485636183

I think we need to be planning for the day that artificial meat and milk etc are a real thing. It is not going to be that far away. The uptake of it will follow the same process as squeezing people out of home ownership.
That is what needs planning for. Cater to those who can afford what is produced off the land, as the uptake of fake food will be strongly resisted.
The idea that factory farming for everything actually makes me think we need to hang up our selfishness and embrace the new technology, but for one thing, it gives enormous, almost absolute control of the masses by the few who do the producing. I am not liking the look of the future.

by tim12 | 29th Jan 17, 8:16pm 1485674166

new technology is scary. Driverless cars? Basically an unmanned drone? Terrorists will love them.
https://www.theguardian.com/technology/2014/jul/16/google-fbi-driverles…

by PocketAces | 29th Jan 17, 5:55pm 1485665754

Just hackers having fun, even, but we will do it, anyway, we just can't help ourselves. And the uptake of it will be achieved through the means I described just above.