Prices steady on a sluggish market

Press, 2 December 1989, Page 7

Prices steady on a sluggish market

The wool market remained steady at a combined sale in Christchurch yesterday of wool from the Timaru and Invercargill regions. The market indicator price firmed slightly in response to a slight improvement in demand for crossbred second-shear fleece. The indicator price was 601 c a kilogram clean, 2c up on Thursday’s Napier sale. But the market over-all was still sluggish, and the Wool Board was required to give heavy support, buying 40 per cent, or 5922 bales, of the offering. The board was even more active in the Timaru section where it bought nearly 49 per cent. Compared with last week’s Dunedin sale, the price of Merino and Halfbred fleece was unchanged. For the crossbreds, 32 to 34 micron prices were

unchanged from the Napier sale, and 35 to 37 micron was barely steady to unchanged. Good to average second-shear was up to 1.5 per cent dearer and the remainder unchanged. Bulky skirtings, clothing oddments, crutchings second pieces and locks were 2.5 per cent cheaper.

Exporters said the growing price gap between New Zealand crossbred wools and those from other countries was reflected in the board’s high level of intervention purchases. Many overseas customers were leaving the decisions to buy to the last moment to avoid being caught with overpriced stock on a declining market. Brokers said Timaru wools opened up well, with the Merinos of good colour, length and style. Halfbred and Corriedales

tended to be discoloured by dust and some clips had tender staples, with later-shorn showing cotts yellowing. Crossbred shorn hoggets tended to be webby, tender and in some cases short. Crossbred ewe wool showed similar faults and the later-shorn clips had more cotts.

Brokers said growers should remove cotted fleeces and points from their main line wool to attract top prices. The Timaru catalogue contained 16 per cent Merino, 15 per cent Halfbred and Corriedale, 44 per cent crossbred, 4 per cent early and secondshear, 10 per cent fine oddments, and 11 per cent other oddments. The order of sale was: Wrightson 388 lots, 3077 bales; Pyne, Gould, Guinness 159 lots, 1359 bales; total 497 lots, 4436 bales.