Ideal wool growing season prompts advice to prepare new clip to highest standards

Take time out to optimise the value of new season woolclips

Sheep
Prices for wool are hard to control, but growers can take steps on-farm to help boost returns from their fibre production.

Prices for wool are hard to control, but growers can take steps on-farm to help boost returns from their fibre production.

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Woolgrowers have a range of tactics available to help boost returns from their new season clips.

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Australia's eastern states are enjoying one of the most optimistic wool growing seasons in generations this year.

It is certainly exciting times in regard to increased wool yields and productivity on our farms - and the grass continues growing.

We can report that wool cut per head is well up and many growers are recording record lambing percentages following the completion of their marking programs.

But away from our farms, we all face the darkness and downfall of our global wool markets.

Together we enter an economic period which has the potential to cause further erosion in the value of our beautiful and sustainable fibre.

With the world entering a new phase of the coronavirus pandemic, the timeline for economic recovery seems further away than we had initially forecast.

We can only manage the variables within our farming systems. So let's take some time to consider what you can do to deliver the maximum return on your new season wool clip.

Preparation to the highest standard by employing a professional woolclasser is important.

Limit any chance of contamination, such as stain, baling twine, dag, dog hair and/or brands.

Discuss a flat selling rate per bale with your wool service provider and manage your forward price via the Sydney Futures Exchange (SFE) Riemann contacts.

Explore quality schemes that align you with premium markets and complete and sign off on your National Wool Declaration (NWD).

Present your clip in new nylon packs and take care to clearly stencil your bales as per the Australian Wool Exchange (AWEX) Code of Practice.

Our three-week Australian winter auction recess period (starting next week) can not come soon enough.

Wool broker warehouses and farm stocks continue building as growers pass-in wool at the auctions and exporters struggle to place new purchases into orders.

SFE Riemann forward financial trade levels are factoring in further reductions as growers/sellers reluctantly move into the new lower trading ranges.

We are all searching for a price basis and some positive market signals to build a foundation for our market.

It is time for perspective. We would all like prices to rise but, before that occurs, we need to navigate our way forward through a period of dramatic global economic uncertainty.

This is linked directly to poor international consumer confidence as a result of the coronavirus.

All markets are driven by sentiment and currently our wool export trade is unsettled, hesitant and cautious.

The trading trend is a short selling mode, as opposed to selling from a stock position.

Spring shearing will soon start and bigger offerings are likely from October onwards - and we can add warehouse surpluses to the mix.

Understand that today's price levels are still profitable, and most likely will grind lower into the new season before they recover.

History has a habit of repeating itself and possibly we are entering a medium-term cycle of wool trading at lower value ranges.

Why not continue to be sellers at these levels, as the alternative may be more costly to your business?

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