Wool prices better than expected on first day

Press, 21 January 1982, Page 20

Wool prices better than expected on first day

Considering the rather gloomy note of recent wool auctions, yesterday’s Christchurch sale — the first day of a two-day offering this week — was better than expected. The demand for most classes of wool was reasonably strong and prices were' at comparatively good levels, particularly for the better style fine wools. A pleasing feature of the sale was that Wool Board support for the market declined sharply and a large part of the offering went to the trade.

Compared with the last Christchurch sale at the beginning of December, there was little alteration in the greasy prices for the finer wools. The bulk of the crossbred fleece was reckoned to bd back about 5c to 10c a kilogram in the grease, the decline being most marked for the coarser end of these wools.

The adjusted weighted average price at 256.98 c a kilogram was very similar to that for the December sale, and means that all wool sold yesterday will receive a supplement from the Government of 24.5 per cent. Almost a third of the wools sold yesterday will also earn a supplement from the Wool Board’s price smoothing or stabilisation scheme. This additional payment will average about 9.5 c a kilogram and will apply to the bulk of the crossbred sold.

The main emphasis of this support will be on the coarser wools in this category, and less on the fine and medium crossbreds. The decline in Wool Board intervention in the market was a factor of the composition of the selection of 22,475 bales, much less coarse crossbred fleece and secondshear wool was included than at recent sales.

In the opening catalogue of the'day, the board bid on 33.2 per cent of the wool coming forward and had 7.7 per cent passed or sold to it. In the second catalogue its activity declined, its bid being made on only 22.1 per cent of the wool, and passings or sales to it. dropped away to only 4.4 per cent. Over the whole offering, the board put in a bid on 6169 bales, or 27.4 per cent of the selection, and had only 1345 bales (5.98 per cent) passed or sold to it. After yesterday’s purchases. board stocks will now be about 376,000. Before this sale Government supplements on wool this season had reached about $BO million and the board had as well supported the market to the extent of about $7 million.

Although back on December rates in Christchurch, crossbred wools were firm to dearer on last week’s Wanganui sale. The fine to medium crossbred fleece showed a lift of up to 2 v a per cent and this improvement became more evident as the sale went on. For the finer wools and the fine to medium crossbred fleece, the demand was quite strong. Coarser crossbred fleece did not enjoy as good an inquiry. If anything the market for Halfbred and Corriedale fleece also tended to improve during the day. The market was firm on southern rates for Merino wools and also for the better style fine to strong Halfbred and Corriedale. There was some, irregularity in the market for the stronger Halfbred and Corriedale fleece and tender fleece. Nevertheless, good prices were paid for some of the Halfbred and Corriedale offerings. Halfbred fleece

making to 4b7c and Corriedale to 413 c. A little Merino also made to 525 c. The bulk of the small selection of Merino made from about 400 c to 500 c, while fine Halfbred and Corriedale realised mainly from about 290 c to 320 c, medium wools from about 260 c to 310 c, and stronger qualities from about 260 c to 290 c.

Some of the better sales of sizeable quantities of these wools included 41 bales of Corriedale from Davaar, Ltd, (Scargill) which made from 312 c to 375 c, 67 bales of Corriedale from the Coldstream clip which brought from 305 c to 331 c, and 38 bales of Halfbred and Corriedale from J. M. Inch (Hawarden), making from 300 c to 353 c.

A feature of the sale was also the greatly improved returns received by some vendors for wool offered previously untested and put up again yesterday after being objectively measured for characteristics, including fibre diameter and yield. At present-day price levels the measurement of these characteristics no doubt gives buyers extra confidence. In some quarters the lift in prices for these wools was also regarded as indication of a stronger market, although it was not officially quoted as being dearer. One line of Halfbred passed in in December at 231 c sold yesterday at 316 c, and another line passed at the same sale at 250 c brought 329 c yesterday. There was also an 80c gain for an offering of Halfbred wool which measured 24.7 microns and brought 400 c yesterday. Some Corriedale which measured 23.7 microns gpt up to 351 c yesterday when it could make only 305 c in December when untested. Crossbreed fleece sold mainly between about 260 c and 290 c yesterday, with a sprinkling of sales at better than 300 c.

Bullock Hill station had one of the better sales with 24 bales of Romney bringing from about 295 c to 302 c. A small amount of fine lambs’ wool made up to about 290 c. Coarser lambs’ wool ranged up to 263, with sales of this type falling mainly between about 240 c and 260 c.

The main buying support yesterday came from China and Japan, with Eastern and Western Europe also active. Two bales of super extra fine Merino from E. W. Rentoul (Wairau Valley) brought the top price of the day at 525 c. Another five bales of strong Merino from this vendor’s offering made 509 c. D. M. Caygill (Clarence Bridge) was the only other vendor to top 500 c, with four bales of fine Merino woolly hogget making 515 c. G. Capstick (Waiau) received 457 c for nine bales of extra fine Halfbred woolly hogget wool measuring 22 microns. For five bales of extra fine woolly hogget C. H. D. Inch (Hawarden) was paid 417 c. J. Erickson (Oxford) reached 400 c for six bales of fine Halfbred and W. W. Lee (Seddon) was paid 399 c for four bales of extra fine shorn hogget.

For seven bales of extra fine shorn hogget O. J. T. Grigg (Culverden) received 387 c and 380 c was the price for 18 bales of extra fine shorn hogget from the Foxdown Partnership (Scargill). Prices for Corriedale wool ranged up to 413 c for nine bales of extra tine shorn hogget from D. P. Clouston (Seddon). G. J. W. and F. K. Beere (Hawarden) sold five bales of extra fine shorn hogget at 410 c and K. J. Howden (West Eyreton)

received 407 c for nine bales of extra fine shorn hogget. J. R. N. Zino (Hawarden) realised 377 c for five bales of medium shorn hogget and Davaar, Ltd, (Scargill) sold nine bales of extra fine shorn hogget for 375 c.

Crossbred wool made to 308 c for 10 bales of extra fine shorn hogget wool from G. D. Holmes (Blenheim) and for 29 bales of similar wool in the bins of Wrightson N.M.A., Ltd.

S. W. Hough (Chatham Islands) realised 305 c for 14 bales of fine crossbred and 304 c for 10 bales of extra fine shorn hogget. J. Tuanui. (Chatham Islands) realised 305 c for 16 bales of crossbred wool.

Sales at 304 c included six bales of Romney shorn hogget from C. L. and A. E. Salkeld (Rangiora), six bales of fine shorn crossbred hogget from D. and S. Oxnan (Murchison) and four bales of extra fine shorn hogget from B. M. Moffatt (Nelson.).

Crossbred second-shear wool realised 276 c for five bales from L. B. Kenny (Lake Haupiri). Pyne, Gould, Guinness, Ltd, also had seven bales of second-shear wool, which made 270 c, in its bins. One of the best sales for Perendale wool was made by Lightfoots Farm (Rangiora) with seven bales of shorn hogget realising 318 c. N. Watson (Russells Flat) had 11 bales of shorn hogget at 308 c and D. and M. Johns (Nelson) realised 305 c for four bales of shorn hogget.

Coopworth wool bought to 295 c for nine bales of shorn hogget from Spaxton Downs (Waiau) and five bales of shorn, hogget from R. R. Parsons (Raneiora).

-For 10 bale's of fine Down cross in the bins of Wrightson N.M.A. the price was 314 c, and for four bales of extra fine three quarterbred shorn hogget R. J. Ormond (Culverden) received 332 c. G. J. W. and F. K. Beere

sold four bales oi Borderdale shorn hogget at 332 c and J. B. L. Saville (Amberley) received 312 c for 10 bales of Borderdale shorn hogget. Twenty seven bales of Suffolk wool in the bins of Wrightson N.M.A. sold for 303 c.

For 10 bales of Corriedale lambs’ wool D. S. L, Dillon (Blenheim) realised 293 c. M. McKee (Blenheim) sold another four bales at 289 c and Sulphur Springs Partnership (Amberley) sold another nine bales at 287 c. For crossbred lambs’ wool P. M. Hammond (Blenheim) received 263 c.

Details of catalogues in order of sale were: Wrightson N.M.A., Ltd, 10,747 bales; Pyne. Gould, Guinness, Ltd, 11.278; total, 22,475 bales.

The sale will conclude tomorrow with the offering of the catalogues of Dalgety New Zealand Ltd and the New Zealand Farmers cooperative Association, Ltd.