After the final auctions of the year in late June, a review of the recently completed season shows this year’s wool market exhibited stability, with some wool types approaching three-year highs. However, significant scope for growth remains.

Crossbred wools finished the season strongly, including plenty of the older wool attracting buyers, enabled by the refurbishment and return to full production of Woolworks North Island scour at Awatoto, Hawke’s Bay in April. Very little older strong wool now remains unsold, which is a positive position for the start of the new season, when supply will be unhampered by old stocks sitting in the pipeline.

Mid micron wools met a more challenging market, leaving brokers in the sale room to take a firm stance to protect clients’ wool from bargain hunting buyers. However, we are still early in the mid micron season, with Australia about to go into recess, European buyers focused on their upcoming summer holidays, and European retailers still in the grip of recession. Ascertaining the state of this market sector should be easier once regular activity recommences in the coming months. 

A promising early merino offering at the final South Island sale met steady competition from fine wool buyers.

An early run of favourable North Island weather helped ensure winter second shears started in a timely manner. In comparison to the previous two seasons when the wool colour was the worst on average for the last decade, wool coming through so far is extremely good quality. Buyers have reacted accordingly, with demand and prices increasing to significantly better levels than for some time.

Meanwhile, warmer, drier weather in the South Island may increase vegetable matter and impact on wool quality. Shearers and wool handlers need to be mindful of best practice for wool preparation to ensure wool is presented at its best, and not discounted at auction.

Chinese markets remain challenging, with lower activity than in previous seasons. Fully re-engaging these markets is a work in progress for exporters, though increased activity out of India has somewhat offset the lower demand from China.

As the 2024/25 season commences, we can look forward to gradually improving returns as demand consolidates, with the quality of the New Zealand clip compared to most other producers leaving this country’s growers best placed to take advantage.

We are pleased to announce the introduction of our new Wool Agency Terms, effective 1 August 2024. These terms, which can be found at www.pggwrightson.co.nz/our-services/wool/wool-sales-options, have been created to provide clarity and transparency regarding the handling and processing of wool sent to us and I encourage you to familiarise yourself with them.

PGW Wool will insure your wool while it is under our control. For detailed information on this coverage, including limitations, please refer to section 3 of the Wool Agency Terms. For concerns about insurance while your wool is on the farm, please contact your insurance company, broker, or reach out to Gary McCarthy, PGW’s Insurance Relationship Manager, at [email protected] or 027 301 1868.

In our commitment to sustainability and cost management, we will no longer mail out the Annual Grower Sale History Summary, Tally Books, Wool Specification Sheets, and Sale Date Cards. These documents are now available online via the following methods:

Annual Grower Sale History Summary

• By email request to [email protected]
• By request to your local PGW Wool Rep

Tally Books

• At selected PGW Retail stores
• By request to your local PGW Wool Rep

Wool Specification Sheets

• At selected PGW Retail stores
• Downloadable (editable) version available: Wool Specification Sheet | PGG Wrightson
• By request to your local PGW Wool Rep

Sale Date Cards

• Downloadable version available: Wool Sale Dates | PGG Wrightson

Wool Market Reports

• Updated weekly following auction day: Wool Market Reports | PGG Wrightson

If you have any questions or need further clarification, please contact your local PGW Wool Representative or our PGW Wool Administration Team.

Regards,

Rachel Shearer
Acting General Manager Wool
PGG Wrightson Ltd