Wool slumps at Auckland

Press, 30 October 1981, Page 3

Wool slumps at Auckland

PA Auckland Wool prices fell to their lowest point of the season at Auckland yesterday in a lack-lustre market requiring extensive taxpayer support for woolgrowers. The auction — the first of the season in Auckland, although Auckland wool has been sold elsewhere — continued the slide which has been evident for most of this month. The sale is estimated to have cost the Government $1.7 million in payments to woolgrowers under the supplementary minimum prices scheme.

That, added to the payouts which have been necessary at earlier sales at other centres, commits the Government to $27 million at this early stage of the season in subsidising woolgrowers’ incomes.

If a high level of subsidy is necessary at the Christchurch sale today, the Government commitment on wool alone will be close to $3O million before the weekend.

Even some of the most experienced buyers yesterday confessed to ' being confused by a market which reflected a slack world demand for a basic fibre.

While bidding was fairly well spread, no one country bought a lot. Buyers were selective and the market for second-shear wool, in particular, was described as the most erratic for years.

The main buying strength came from Eastern and Western Europe and from New Zealand scouring companies. The market was quoted as either in buyers’ favour or up to 2.5 per cent cheaper compared with values at an uneasy sale at Invercargill last Friday. The Wool Board bid on about 30 per cent and bought about 6 per cent of an offering of more than 20,000 bales, including 12,844 bales of new season's wool from the Auckland province and more than 6000 bales from Wellington and Wanganui. The adjusted weighted average sale price was 258.57 c a kilogram. Based on this, a Government supplementary payment of 23.8 per cent will apply to all wool sold at the sale and all wool sold privately from midnight on October 28 to midnight on October 29. Official range of prices:— Perendales:

Good Average 301 to 315 290 to 300 Crossbred Hogget. 5O/52s: Good 305 to 320 Average 292 to 304 Crossbred Hogget. 48750s: Good 311 to 331 Average 295 to 310 Necks: Average 264 Pieces: Average 190 to 230 Bellies: Average 187 to 212 Locks: Average 137 to 160