The Country: February Wool Report with PGG Wrightson's Rachel Shearer

PGG Wrightson's GM Wool takes her monthly look at the market, which is facing buyer resistance after six months of solid rises. 

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Episode Transcript

Speaker 1 (00:00):
Let's have a look at the Wall market worth, Rachel Sharer,
that's a great name for the GM of Wall for
PGG rights and here on the country Rachel. Now, I
know you're not getting up to the golden shares for
the big PGG rights and vetbed National Sharing Circuit Final,
but that great south from the Nathan Stratford's going to
take a bit of beating.

Speaker 2 (00:19):
Line and it wouldn't it be wonderful if he took
it out again. But there's some really strong competition. I
think it's really encouraging. You know, it's amazing to see
those record entries despite that seventy percent decline and sheep
numbers over the past forty years. I understand that there
are record entries, so it's good idea to get them
behind these amazing, amazing athletes. And I think Browen is

(00:39):
going to be there as well, isn't she.

Speaker 1 (00:41):
Yep, Oh, she'd turn up at the opening of an envelope.
I discover a bit of grief. Actually she's the MC.
She does a great job there. Let's have a look
at the market. Bit of a correction yesterday in the
South Island sale. Now we've seen a marked improvement in
strong wall prices over the last what six months, but
I guess water eventually finds its level a week getting
buyer resistance at these prices.

Speaker 2 (01:02):
Look, the exporters are saying that they are starting to
meet some resistance, especially from those big markets of India
and China at these at these higher prices. As you've mentioned,
it was a classic supplying demand story with the exporters,
you know, looking to fill their books. But now at
these new levels, starting to meet some resistance. But there
is some you know, there is some positive news out there.

(01:24):
Dan's been one of the biggest news of New Zealand.
Will they produce carpet yarn for the global global carpet industry.
They're reporting really strong demands coming from the cruise ship industry,
which I don't know on the back of COVID, I'm
pretty surprised, but about cruise ships. But the yeah, the
demand from the cruise ship industry of putting woolen carpets
in is quite significant. So they are they are reporting

(01:46):
good demand there.

Speaker 1 (01:48):
Well, they all floating petri dishes. They're more popular than ever.
If you could land or if the wool industry could
land that Kayeinger or a contract. That would be a
good news story.

Speaker 2 (01:58):
Oh wouldn't it. Wouldn't it that be a significant boost
for the sheep farmers of New Zealand, but also New Zealanders,
you know, with the wonderful properties of wool as far
as health benefits and the like. Wouldn't it be great
if we could land that contract and ideally others as well,
both internationally and domestically, because it really is the increase

(02:19):
in demand which is going to which is going to
drive prices where they need to be for our hard
working sheep farmers.

Speaker 1 (02:25):
Okay, one of the big one is recently in the
wall market, and this is quite interesting is the ballets
and pieces and even the DAGs. They were literally worthless
during the real lows of COVID. At least now it's
worth bailing them up and selling them.

Speaker 2 (02:39):
Well, that's what that's what we're saying. You know, as
much as up to two dollars forty compared to during COVID.
You know, I got down to about that's forty cents.
So it's probably a good time for growers to reconsider
putting those you know, those oddments, putting those DAGs on
the truck where they send them the rest of their
wall clip because it's been the biggest winner percentage wise

(03:00):
in the market.

Speaker 1 (03:01):
Okay, Rachel Scherer, I know you're not heading to the
Golden Shares. Plenty of the PGG rights and team are there.
You'll be at the Wanaka Show next weekend. Enjoy it.

Speaker 2 (03:10):
Thank you. I'm looking forward to connecting in with all
our growers and as such a great event, isn't it,
so look forward to hopefully seeing you there too. Jamie