Surprising Turnaround: Wool market sees impressive upward trend

Surprising Turnaround: Wool market sees impressive upward trend

Tony Leggett has been working in agricultural journalism for over 30 years and is currently the Managing Editor at NZ Farm Life.

Rabobank's latest outlook for agriculture suggests some hope for better times ahead and Legget told REX hosts Hamish McKay and Rebecca Greaves that the dairy sector in particular certainly isn't finding it easy.

"There's been more bad news coming out around dairy payout this year, ANZ and now BNZ bank in the past days have revised down their forecast for the coming season.

"The message there is still around keeping control of costs and doing your forecast budget and trying to stick to it if you're in the dairy sector."

He admitted most people working within the rural sector are hoping for brighter times ahead following Cyclone Gabrielle and the damage that weather had.

On a more positive note, however, Legget was far more surprised by the shift-up that the wool market has seen in the last six weeks.

"It wasn't that long ago we were talking $2.20 per kilo if you were lucky for fleece wool and now I see in recent reports, there is almost $1 more on the table now.

"That would be a really nice boost to see."

Not everyone would of course be able to sell their wool for more than $3 per kilo but Leggett does believe that it won't happen overnight, that sort of price is not out of the realm of possibility.

He added that those sorts of prices would only be commanded by the best fleeces, but it would be an amazing thing for sheep farmers in Aotearoa.

"I'm talking about probably more South Island fleece, it's going to be finer, possibly cleaner not as much yellow, all of those things.

"It's still a positive trend and love to see a wee bit more to come."

Leggett is optimistic there will be a general firming in the lamb and beef industries through the rest of the year, although doesn't expect anything meteoric.