Crossbred wool prices expected to be good

Press, 28 July 1986, Page 2

Crossbred wool prices expected to be good

PA Wellington Low inventories both in New Zealand and overseas and steady demand from customers in Eastern Europe and Asia are likely to bolster auction prices for crossbred wools in the coming months, says the Council of Wool Exporters. Prospects for finer wools will depend on the value of the Australian dollar, the council said in a preview of the August 8 sale of Timaru and Invercargill wools at Christchurch.

Exporters said they expected prices to remain firm on recent sales. In October and November auction prices for crossbred wools were likely to be influenced by low stock levels In Western European mills. Fine wool prices, however, were largely set by the demand for similar wools in Australia.

With 12,000 bales on offer, the August 8 sale is one of the smallest of the year.

The mixed offering of crutchlngs, second-shear and some early pre-lamb fleece wools will meet ready demand from exporters buying for scoured and greasy shipments, as well as some New Zealand spinning. Most sought after at the sale will be the first prelamb shorn fleece wools of the year. These wools are usually sound and of good length and colour — the sort of wools which have been particularly short

Because of seasonal factors, a lot of the 198586 clip was stained or discoloured. This has put pressure on wools of good colour which have been used in scoured blends to bolster colour to accept-

able levels. Mr Alan Chapman of the Weddel Crown Corporation, Wellington, said this had resulted in a particularly strong demand for longer slipe wools (the wools removed from pelts at freezing works). "Slipe wools are generally of very good colour and they have been eagerly sought after in recent months. This and interest rate pressure means that slipe wool inventories are very low,” he said.

Last season slipe wool stocks were at a nearrecord high, he said. Mr Chapman has recently returned with an optimistic outlook from a visit to his company’s markets in Western Europe, Britain, Asia and the United States.

“Economic uncertainty in Western Europe, the market for 40 per cent of New Zealand wool, means that manufacturers’ stocks are extremely low. This is in spite of steady demand for carpets and reasonable strength in the worsted business,” Mr Chapman said. “Certainly, the woollen carded business is slow, but it’s not as if the retail scene has frozen over.

“New Zealand crossbred wools are in our view very reasonably priced at present and it will take only a small increase in demand from one of our stronger markets and the Western Europeans will find the pressure on to obtain sup plies.

“It happened this May when exporters started increasing their sales to China and the U.S.S.R. ...

Western Europe found that it was being forced to

meet the market. “They are likely to find themselves in the same position in the new season.”

Also back from overseas is Mr Don Quested of Hart Wools, Christchurch. He sounds a note of caution, pointing out that while wool stocks are low, much .of the small offseason demand from

Western Europe is being met from very cheap sources such as the U.S.S.R. and Britain.

“Also, the prices for our finer wools will depend very much on the Australian dollar. Its continuing slide is not a good omen as it makes Australian wools so much cheaper than comparable New Zealand types.”