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Market lacks direction
THIS week we had 41,000
bales rostered for sale nationally with Sydney, Melbourne
and Fremantle all operating on
Tuesday and Wednesday.
The market continues to lack
direction. In early trade this
week we saw fine wool slightly
stronger, mediums easing and
xbreds and cardings unchanged.
Let’s break it down by category, from the start of the season until now to provide some
context.
Firstly, Superfine Merino
Fleece, Sub 17.5 rallied
strongly into the end of last season. 16.5 peaking in week 52 at
2876, representing a premium
of 1497c over 21.0 micron.
Driven by a resurgent European market we saw strong
demand for all fine types and
descriptions, with some specialty types selling to extreme
levels.
While sentiment is still good
out of Europe, it is apparent
they have backed off a bit –
with some mills not accepting
new business as their processing schedules are full for the
foreseeable future.
This explains the steady
correction over the last three
months with 16.5s slipping
400c clean. At these levels it’s
more difficult to come up with
a sale strategy, current levels
Suits you sir ... European
demand for fine types is
strong.
WOOL
REPORT
Rob Calvert
WOOL SOLUTIONS
are OK, and, yes, they could
easily slip further.
On the flip side, if there is a
second wave of purchasing out
of Italy these types could dart
back up to their seasonal highs
very quickly – aided by low
stock levels in brokers’ stores.
Medium microns have been
in a tight sideways trend for 12
months, with 21.0s struggling
to break through their glass
ceiling of 1300 clean. They’re
sitting at the top of that trading
range now – resulting in a more
normalised spread of 1180c
clean between 16.5 and 21.0.
Feedback out of China is
that there is genuine demand
for export product (yarn, fabric and garments) but they face
the same struggles with export
shipping.
Frustratingly, business is
being passed up because they
can’t meet delivery timelines.
At some stage this shipping
situation will correct itself,
however, I can’t help but think
that the longer it takes the more
demand pressure builds, ultimately resulting in breakout
upwards. This is only my opinion of course.
There are many I talk to
who believe China’s growth
will be significantly more subdued in coming years which
would obviously have a negative effect on our wool market.
Personally, I think the risk to
the downside for 21.0s in actual
dollar terms is limited. They
have more potential to rally
rather than they can fall.
Oh, oh the ewes are getting bigger
“Shearers are saying they
won’t go back to sheds again — it
is happening quite a lot across the
southeast (of Victoria and South
Australia).”
Similar comments were made
by shearing contractor Barry
Clark, Statewide Shearing, who
runs teams across Victoria and
NSW.
“There is no question that
sheep are getting bigger,” Mr
Clark said.
“At the end of the day genetics
have just got out of control and
you are now getting young ewes
that are sized like poddy calves.”
“You see mobs of ewes at 90,
100 or even 110kg,” Mr Clark
said.
“The average shearer is probably 80kg to 85kg, so you’re asking them to drag out more than
their own body weight times 160
or 180 (sheep shorn in a day).”
– Weekly Times
CATTLE SALE
12.30pm Thursday 2nd
December 2021
600 Cattle on offer
• 40 Short Horn &
Short Horn X Steers
• 60 Hereford
X Angus Steers
• 65 Hereford Steers
• 415 Angus Steers
• 20 Angus Heifers
awn.net
Looking forward, the future
is far brighter for finer types
(sub 30.0) If we see medium
Merinos break upwards in the
new year, we can expect 24.0
to 29.0 to follow in sympathy.
The same cannot be said for
Winton Poll
INSPECTION DAY
1st December 2021
Inspection from 1.00PM - 3.30PM at Winton Woolshed
Winton Poll merino stud will be having an inspection day to view
current genetics of the 2020 drop rams which will be 14.5 months
old; shorn 23rd March 2021. Information provided will include sire,
current micron, bodyweight and poll status.
At the Smithton Selling Complex
A/c ICMS Property Investments
Winton Poll have been using leading sires from prominent studs
such as Alfoxton, Roseville Park, Glenlea Park, Moorundie Park
and Nerstane with excellent results. There will be an opportunity for private sales of the rams on display. 2019 drop Poll rams
selected for the Campbell Town Ram Sale will also be available
for viewing.
All cattle are never ever accredited nil grain nil
antibiotics cattle range from 230kg to 490kg. Excellent
opportunity to secure program cattle within Tasmania
Contact Cade Ebdon 0409 908 118
00725-2111
EWES are getting bigger, with
the supersizing of crossbred and
composites now a major concern for the shearing industry to
the point some mobs are already
being shunned by shearers.
“The amount of size and
weight shearers have to drag
across the board has just got
ridiculous,” said Glenn Haynes, a
shearer and wool-handling trainer
with the Shearing Contractors’
Association of Australia.
Then we come to the xbred
sector. All types and descriptions are at disappointing levels. We know greasy stock
levels are high which certainly won’t help a meaningful recovery.
the very course, poorly prepared types that have very limited market at a time when the
world is producing too much.
We have only three selling weeks until the Christmas
break. It is difficult to see clarity around this market direction
before the new calendar year.
In industry news this week,
we have been advised that
AWEX have proposed a change
to the NWD pertaining to the
Ceased Mulesed category.
We are strongly opposed to
any change due to the direct
impact on Tasmanian wool
growers. Alistair is lobbying
strongly on behalf of Tasmanian industry and will report
more in his next column.
We have another 40,000
bales nationally next week,
selling in all three centres on
Tuesday and Wednesday.
2019 drop Poll Sale Ram
,
17.8 micron
Contact: John Taylor 0417 002 613
Stud Advisor: Andrew Calvert 0418 130 155
1050 Valleyfield Road, Campbell Town 7210 TAS
TASMANIAN COUNTRY Friday, November 26, 2021 19