Fine wool falls sharply at Christchurch sale

Press, 13 February 1981, Page 8

Fine wool falls sharply at Christchurch sale

Fine wool prices dropped back sharply at the Christchurch wool sale yesterday.. For some wools the easing on recent rates was to 5 per cent.

Compared with the second day of last month’s sale in the centre’ Merino wool and extra fine Halfbred and Corriedale were cheaper by 10c to 15c per' kilogram and extra strong Halfbred and Cqrriedale were down by 6c to Bc. The Wool Board was also very .active, bidding on more than. 76 per cent of the offering of 10,012 bales, and having 3139 bales; or 31.35 per cent, of the wool either sold or passed to it. When 12,212 bales of Southland wool were .offered after the sale of the Canterbury wools the' bord’s activity increased- to the extent that it was bidding on slightly more than 80 per cent of the offering and it had 41.2 “per cent of the wool sold or passed to it.

Out of the 22,224 bales put up from the two centres

the board ended up with 8176 bales, or 36.8 per cent, passed or sold to it. The board was supporting the market under its intervention system. Under this procedure it can vary its price levels and there was a suggestion that the board has lifted its limits on crossbred wools- by something like 3c for better types, but the board does not <lisclose such movements. The board was also very active at the Wanganui sale earlier this week when it had about 30 per cent of the crossbred wool sold or passed to it. The continuing gradual devaluation of the New Zealand dollar is seen as one possible reason for the board trying to get prices up a little. Another is farmer concern at the present level of prices, which for crossbred wools are about 30c to 40c per kilogram lower than at this time last year.. Compared with the Wanganui sale crossbred fleece was described as beisg unchanged and prices were also estimated to be similar to those ruling on the final day of last month’s. Christchurch sale. The bulk of this wool was making from about 240 c to 270 c, with a few lots making to 300 c. Because the whole of the sale of both the Christchurch and Invercargill wools was by sample most of the selection was of fleece. All of the finer wools were cheaper. To some extent this followed the recent easing in prices for these wools in. Australia, but some of the Canterbury,

h wools sold‘yesterday were still quite a long way behind Australian rates. ’ In Melbourne this week - values for Halfbreds were s up to 4 per cent cheaper and s this also followed an easier a trend earlier. I While the strong and t extra strong Halfbreds were - estimated to be selling yfest, terday on a par with Austra- ’• lian rates, the fine and extra fine wools were said to be / trailing Australian rates to B 10 per cent and Merinos t were lower to 21 per cent. e Part of this discrepancy r could be put down to the limited weights of these ’ wools available locally re- ’ suiting in only limited buyer - interest. - There was only a small 3 weight of Merino in yesterr day’s sale and on a nominal 1 basis this was quoted easier r by up to 5 per cent on the 1 recent Timaru fine wool 1 sale. This was a decline in 1 greasy terms of 15c to 20c. Most of the small offering - was selling in the 330 c and : 370 c range, with an odd sale ■ reaching 401 c. i The fine and medium * Halfbred and Corriedale I wools sagged by 2| to 5 per >. cent and the stronger edge of these wools were also ; slightly easier.' i Halfbred and Corriedale ; wools were also • selfing mainy from 240 c to 270 c j and at these levels were 20c * to 40c back on a year ago. ■ There were still odd high * sales, however, at up to f 324 c for Half bred and 310 c for Corriedale. s For a small weight of fine J lambs’ wool prices ranged s from 236 c to 260 c. r While the Wool Board t was clearly the main oper- . ator, amongst the trade

Eastern European, Chinese and Western European interests and New Zealand mills were all in the market, with a small weight also going to Japan. Chinese interest has been a big force in the market this season but at this time of the year there are fewer wools coming forward which are suitable for the Chinese. _ A possible factor 1 in the weaker trend in the market mentioned in the saleroom yesterday was the British seamen’s strike. Causing delays in shipment of wool among other products and financial problems. When the Invercargill wools 1 were reached the wholly crossbred selection barely held to earlier rates and the Wool Board’s bidding increased. According to one southern observer, for the poorer wools, values were as cheap as they have been this season, but better wools continued to sell reasonably well. * . Most of the southern fleece brought from 230 c to 265 c, with an odd sale rang-’ ing up to 285 c. which was paid for woolly hogget. The adjusted weighted average price for the two sales announced last evening by the Wool Board was 245.61 c a kilogram, which is up fractionally on this week’s Wellington-Wanganui sale, but down on the recent Timaru sale when it was 249.31 c . and the .last Christchurch sale when it was 247.72 c. “ One effect of the offering being totally by sample and in lots averaging over all 19.6 bales was that the sale was completed in much quicker tinie than usual.