4 Sep 2013

Merino wool prices get boost in Melbourne

1:12 pm on 4 September 2013

Merino wool prices have had their biggest lift in almost two years this week.

The New Zealand Merino Company, which sells the bulk of New Zealand's fine wool, put up its largest offering for the season so far, 1200 bales at Tuesday's Melbourne sale.

The commercial manager Keith Ovens says while prices are still short of where they need to be epscially for the finer wool, the size of the price lift surprised everyone.

"It's a very good and positive move in the right direction. One feature of the New Zealand wool was a new fully-integrated Chinese-made spinner that came into the market for the first time and they were one of the biggest buyers in the New Zealand-Melbourne catalogue," he said.

"It was very encouraging to see a new buyer specifically chasing the New Zealand wools, buying 270 bales and that made a big difference to the price levels."

Mr Ovens says increased demand from China in particular drove the price lift for all of the merino wool on offer at Melbourne.