Wool season expected to open strongly

Press, 20 May 1987, Page 26

Wool season expected to open strongly

PA Wellington The 1987-88 wool season is expected to open on a strong note, according to the New Zealand Council of Wool Exporters. In a wool market preview, the council says that falling production in New Zealand and overseas will help bolster the market for the stronger crossbred wools which form the bulk of the New Zealand clip. Finer wools which are largely produced by the high country merino and half bred flocks of the South Island, are also expected to find a ready market, the council says. In its report, Mr Peter Bird, of Weddel Crown, Wellington, said the marked fashion swing in the past year toward fine worsted garments has boosted demand and prices for fine Merino wools. There will be no significant offerings of New Zealand fine wools until the first South Island sale of the new season in August, he said. “Fine wool prices will be comparable with those prevailing in Australia at the time, though no-one is willing to put a figure on what this will mean in terms of auction prices. “After all, in two months the New Zealand dollar could be on parity with the Australian dollar,

or equally well it might only be worth 60 cents," Mr Bird said. The council says stronger crossbred wools will reflect the solid inter- . national demand for carpet wools of good colour. Mr Simon Kitto, of Cargill Wools, Wellington, predicts prices will depend largely on supply. Most of these wools come from the North Island and Southland where fanners were shearing more frequently to improve cash flow, Mr Kitto said. “It is hard to know what the precise effect will be. But we do know that many farmers have shorn in January and May, which means they will not be shearing again until well after the start of the season. "We could well see a big shortfall in crossbred offerings at North Island sales through to October.” The latest information indicated that wool production was down in a number of. Eastern European countries, including Hungary, Bulgaria, West Germany and European Russia, Mr Kitto said. Since these countries favour crossbred wools for winter apparel, this downturn is likely to result in an Increased demand for New Zealand wool. Mr Don Quested, of Hart Wool, Christchurch,

said while there had been some easing in demand from Western Europe for carpet wools in the last year, this had been com- . pensated by increased demand elsewhere. .There were no grounds for believing wool demand would ease in the new season, Mr Quested said. “If we go into the first sales of the new season with little forward business in place, auction prices could be more volatile than usual. Also we could see a widening differential between varying types,” he said. “For instance, we could see demand ease for the shorter carpet types and crutchings because these types are normally sold to Japan and Western Europe six or eight months ahead. “Fine fleece, on the other hand, is often sold on the eve of auction and would therefore be unaffected." Strong continuing demand for wools of good colour, suitable for the pastel shades which dominated both apparel and carpet fashions, has been working in favour of New Zealand, Australia and South Africa, the countries which excel in the production of these wools. Emphasis on wools of good colour has made quality assurance a priority for the industry. Since early this season the Council of Wool Exporters and the New Zealand Wool Brokers’ Association have been running a joint quality service which ensures that all wools offered for auction are inspected before sale. The team had been in-

volved in femlten and ;■ training Mtefete. in the handling of wool from arrival in the broker’s state to the auction Itself, said the council’s executive f manager/,’ Mr Bill Carter A training video on wool sampling had also been preparedby the M.A.F. audiovisual unit on behalf of the two parties. “The council shares the concern of the Wool Board about poor quality control procedures in some areas of the industry,” said Mr Carter. “However, their rent public statements appear to be mistargeted. “Exporters and brokers have their act together, but they can have: ; no influence on wool which bypasses the auction system. “It is an area which needs to be included in the industry review of the auction system which is due to be convened soon.”