Average Wool Price Slightly Lower

Press, Volume CV, Issue 31001, 5 March 1966, Page 19

Average Wool Price Slightly Lower

(N.Z. Press Association) WELLINGTON, March 4. An over-all average price of 421 d a pound had been received on a “greasy ex - store” basis for the 988,000 bales of wool sold at auction in New Zealand and London and privately up to January 31, the chairman of the New Zealand Wool Commission (Mr E. L. Greensmith) reported to the electoral committee of the Wool Board.

The report said that for the corresponding period last year the average price for sales was 44{d covering 861,000 bales. An analysis of the bales to date this season showed that 843,000 bales were sold in New Zealand and 45,000 bales were sold in the United Kingdom. private sales totalled 100,000 bales. On the basis of the present level of prices, and having regard to the quantity and style of wool still to be sold, ft was estimated that the season's over-all average price would be between 441 d and 42d, a little below last season’s average of 42.1 d. “Based on this assumption and on an estimate that the total production of all wool, shorn and slipe, will reach 660 m lb., the value of the 1965-66 season’s Clio will be approximately £ll6m, Which may be compared With £lo9m for the 1964-65 season, and the 141.5 m for 1963-64,” he said. Higher Total? The total value of all sales might be slightly higher than the £ll6m because of a higher than usual carry-over of wool from the previous season. "When the main selling season opened at Dunedin on September 29 the improved level of prices at the August winter sales were fully maintained,” said Mr Greensmith. Prices for fine wools, compared with the last representative offering of the 1964-65 season at the Dunedin May sale were 5 per cent higher for Merinos and 6 to 101 per cent higher for halifbreds. A feature of the offerings so far this season had been the marked improvement in the standard weight of the clip compared with last season, because of the fairly widespread favourable growing and pasture conditions. Irregular length and short staple wools—a characteristic now inherent in the clip by reason of variation in shearing pnacice apart from any effect of adverse growing conditions—were fairly prevalent.

The early offerings included a fair proportion of good to super spinners’ wools. A falling off in the style of selection, a result of variable climatic conditions, followed at most centres quite early in the pre-shearing period. Later shorn clips in particular. were affected by some discoloration, oott and staple weakness. Stain Faults The pre-Christmas offerings of crossbred skirtings and crutchlngs tended to be faulted by rather more mud and stain than was usual at this time. The steady firming in prices during October continued until early in November when values were 5 to 7} per cent above the season’s opening rates for Merinos and halfbreds, and 2i to 5 per cent for crossbreds. This peak was followed by a downward trend in crossbred prices which, by the first week in December, reflected a decline of up to 5 per cent below the September opening values for medium to strong crossbreds 2i per cent for the fine crossbreds, with ejctra fine descriptions showing a slight premium. Apart from minor fluctuations this level was maintained until the end of the month. Merinos and halfbreds showed less depreciation during the corresponding period and, to early December, were 7} to 10 per cent higher than the Septem’ber opening for Merinos and •fully 6 per cent higher for

■ halfbredj, but prices weak- ; ened fully 2) per cent in the ■ intervening period before the . Christmas recess. When selling was resumed i in January, Merino and halfbred prices finned slightly, i while those for extra fine and i fine crossbreds remained vir- . tually unchanged. 1 Not Maintained Values for medium and , coarse descriptions, however, [ were not fully maintained , and reached a low point in i late January. At that time , prices for the finer edge of ■ the clip declined sharply with the impact most severe on medium to strong halfbreds. Referring to marketing, Mr ' Greensmith reported buying ' had been fairly well spread, ' although some countries had ' operated with restraint at ■ varying times, especially earlier in the season when ' much of the buying was concentrated on specialty wools * available at the time and on ! the fulfilment of forward commitments. The Continent and inters national merchandising houses i had provided steady support - to the market with Eastern f Europe intermittently promi- - nent. Japan had operated fairly freely on a wide range - of types and had been outi standing on medium to strong I halfbreds and fine crossbreds, t which had also attracted use- - ful but limited support from . China. Unobtrusive Bradford representatives 5 had operated mainly at rer striated limits and had picked r up their requirements unobr trusively, though occasionally dominating the bidding s on woolly hoggets and good n length wools. 1 The United States competie tion had been fully maintained on carpet wools with f rather more interest shown ’• in apparel types than for some time.

Local mill buying had followed the usual pattern, with overseas representatives providing stiff opposition on suitable wools in Merinos halfbreds.