Weekly Market Wrap
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With Brian Vagg, Melbourne
May 9, 2008
Market tumbles, then recovers
WITH the market retreating, nearly 3000 bales were withdrawn from sales this week, which reduced the national offering to 48,646 bales.
There was also a high pass-in rate of 20.9 per cent, which resulted in just 38,459 bales selling nationally.
The market opened on a negative note on Wednesday amid uncertainty about where it might find a new level and rising US and Euro exchange rates.
Thursday's scene was much more positive, with an easing of the US exchange rate and a stronger presence from some buyers for China who have been relatively quiet in recent weeks.
Overall, falls were recorded across all Merino types and micron ranges, particularly in the 19-22 micron range. But, once again, prices for the lesser quality wools were affected more than those for the better styled, higher yielding and stronger types.
Prices for skirtings showed a similar pattern to fleece types, with a general easing on Wednesday followed by a firming on Thursday. Oddments finished the week on a very firm note after dropping on Wednesday.
The Merino cardings price guide was down by 2 cents per kilogram for the week, but this was minor compared to the weekly falls in the order of 20-30c/kg seen that occurred mid-March.
Crossbred types again fared better than Merino types, with their average micron price guide being up 5-10c/kg at the fine end and by 1-2c/kg for the medium and coarse wools.
The Eastern Market Indicator (EMI) fell below 900c/kg for the first time in nine months to close at 884c/kg - a fall of 20c/kg for the week. The southern indicator slipped 18c/kg to close at 849c/kg and the northern indicator fell 23c/kg to close at 927c/kg.
In the southern region, the 17-micron price guide closed 2c/kg firmer at 1491c/kg, 17.5-micron closed 4c/kg firmer at 1488c/kg, and the 18-micron rose 19c/kg to close at 1438c/kg. Unfortunately, these were the only increases in the Merino fleece types.
The 18.5-micron fell 5c/kg to close at 1298c/kg, 19-micron had the biggest reduction of 32c/kg to close at 1134c/kg, the 19.5-micron fell 19c/kg to close at 1012c/kg, 20-micron fell 16c/kg to close at 931c/kg, 21-micron fell 14c/kg to close at 880c/kg, 22-micron fell 11c/kg to close at 871c/kg and the 23-micron types fell 15c/kg to close at 842c/kg.
Just over 50,000 bales are expected to be offered nationally next week.
Animal welfare issues
Animal welfare issues, in particular mulesing, have continued to dominate rural reporting.
Announcements are still being made by individual retailers, or by PETA "on their behalf", stating that they will not buy wool from non-mulesed sheep. In some cases this has included reference to use of the Clips Technology.
These statements have been made without the retailers seeking information from the Taskforce or AWI on the mulesing issues.
One also wonders whether the current burst of activity by PETA is in contravention of the Agreement reached between AWI and PETA last June which explicitly states:
"The PETA respondents will maintain a worldwide Moratorium on their Australian wool industry campaign until 31 December, 2010. "Moratorium" in this agreement means the temporary suspension world-wide of any activities which call for, or threaten to call for, a consumer boycott of any specific retailer in relation to the sale of products from mulesed wool.''
Mulesing status declaration
The documentation to be used by woolgrowers to declare the mulesing status of the sheep from which their wool came is expected to be finalised next week.
It will be a stand-alone document which growers will use for both their Dark & Medullated Fibre Risk and Mulesing Status information. Growers will be asked to attach it to their Classer Specification.
As previously advised, the data will be included in sale catalogues and in electronic data transmissions when sales resume after the mid-July break.
This is the first reasonable, and practical, time to introduce the change, as time has to be allowed for buyers and sellers to make software changes to accommodate the additional information.
The AWEX Industry Advisory Committee (ISAC), which drafted the format of the Declaration, also saw advantages in having the mulesing status included on AWTA Test Certificates as part of the package of information about sale lots.
This was agreed to by the AWEX Board and AWEX has written to AWTA on this matter. AWEX has also written to the Federation of Australian Wool Organisations (FAWO), seeking their broad based industry support for this concept. Source: AWIS
PETA offers mulesing peace pipe - or pipe dream?
PETA have offered a mulesing peace deal.
The three-point plan has been taken seriously by wool leaders and offers hope of an end to the four-year long crisis.
Negotiations to end the mulesing dilemma could start within weeks if Australian Wool Innovation (AWI) and the Sheep and Wool Industry Taskforce decide to talk with the activists.
Despite no formal response so far from AWI, it is understood previous offers put to PETA may be revitalised in order to achieve peace.
Negotiating the future of breech clips, promoting bare breech breeding strategies and adopting various pain relief measures may be put on the table in exchange for PETA leaving the wool industry and retailers alone.
The deal could also solve the emerging welfare issues of castraton and tail docking, which are included in new codes of practice. Source: Rural Press
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