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The Wool market is headed up in 2007!
Last spring I titled the lead article “Is the Wool Market headed up in 2006?”, and this year’s lead title says the Wool Market is headed up! Prices today are 40+% higher than they were this time last year and predictions are that this price increase will continue on into our 2007 season! 
Pending Sale Dates for Spring 2007 With much discussion with my partners and customers from across the Western States, we have decided to add 2 additional sales to our spring auction/sale schedule. We feel that the needs of you our customers must be addressed to allow you to have more options in your marketing needs.
Mike's Corner Greetings to everyone and I trust that your 2007 is off to a prosperous start and that your family members are healthy and happy! The wool season is now in full swing and the wool market is as good as it has been in several years. In some cases the current wool prices are as much as 50% higher than this time last year. There seems to be a lot of interest form all directions around the world to make some of their purchase hear in the United States this spring as the international currency markets have played in our favor. As you can see from the chart above the market has risen rather quickly the past few months and now seems be to make a small correction. Most experts seems to agree that the market is in a good position to hold these price levels through this spring as the projected volumes to be offered in Australia this spring are projected to be as much as 10% below last years levels. If you are looking for another option in your marketing needs for this spring PLEASE call me to discuss the options available to you. I have buyers calling me on a weekly basis inquiring about available wools for immediate delivery. The sale/auction system is built to achieve the best market prices available on any given day and Roswell Wool has worked very hard over the years to achieve just that. Your wool deservers to be offered to the World Wool Trade! Is the Wool Market headed up in 2006? That’s the question that we all would like to have answered! I have been running Roswell Wool for going on 13 years now and the one thing that I would do most anything for is to have the wool market get high enough that every customer would leave after one of our sales and have the BIGGEST smile on their face from the better than expected price for their wool! The following statements are quotes from some of the largest wool firms in the world, which I would like to share with you so that you can more fully understand my opinions concerning the coming spring wool season. You be the judge? 1). “The wool sales opened strong in Melbourne Australia this past week, even though some buyers from China were less active than usual, prices remained strong all week, particularly for the better types with good strength values. The greatest increases were seen in the fine wools with increases of 20 plus % for the respective micron categories. The much stronger demand for better types was also apparent in skirting types where the better wools with lower VM’s (vegetable matter) were in demand. There is increasing concern from the wool trade about poor wool clip preparation.” (1-13-2006 Australian Wool Innovation Limited) 2). “We haven’t had the opportunity to report the market in such a positive way for some time. The market was higher in good competition on the back of limited supply and some Chinese business was concluded during the Christmas recess. This could be a short term rally with little fundamental change in demand from China but the expected shortage in supply could be the catalyst for a much needed recovery in wool prices. The prices for the better wools with lower VM’s and better tensile strength remain at good premiums to the poorer types. Many buyers in search of more consistent and predictable quality are neglecting poorly prepared wools.” (1-13-06 www.gschneider.com) 3). “In recent weeks, several signals related to wool have raised optimism for the year ahead. Retail and consumer confidence figures from Italy and Germany show gains year after year, aided by recent sustained cold weather across the continuant. Italian topmakers have appeared more buoyant and active in the wool sale rooms, increasing competition with Chinese processors. China and India are becoming progressively more significant markets for textiles, as booming economies and a growing middle class continue to outpace growth from major world markets.” (1-13-06 Landmark Weekly) 4). “Much of the current market strength can be attributed to concerns of a dwindling selection of good quality top making wools in the coming months. It is believed that last year’s peak shearing season from August through November will result in an influx of low yielding, high VM wool into the selection. This means that better wools were well sought after this week in anticipation of this quality drought. Contributing to the rise in the market is the approaching Chinese New Year and the need for wool exports to cover shipments for January and pre Chinese New Year deliveries.” (1-13-06 Elders BWK International Wool Report) “Marketing Agreement with Cal-Wool” I’m sure that most of you have heard by now of our “Marketing Agreement” with Cal-Wool COOP from Stockton California. I want to clarify one thing up front; this is not a merger of any sort between the two companies. Simply put we have agreed to sell and handle all the wools that Cal-Wool sends to Roswell. Cal-Wool will be another customer (our largest) and they will receive the same services as the rest our customers. This is a bold step for Roswell Wool and Cal-Wool and it will prove to be a very important step in achieving the best market prices for our customers. By being able to offer the largest selection of wools in the U.S.A., this will attract the attention of buyers from all parts of the world, thus providing added competition and better prices. I am honored that the Board of Directors of Cal-Wool Marketing COOP &and One very special note that I would like to share with everyone is that we signed this “Agreement” on the 16th Anniversary of my father’s death (Bronson M. Corn) October 8th, 1989 and that I would like to dedicate this new beginning to the Memory of my father! Mike’s Corner I trust that everyone has survived the Holiday Season and that we have acknowledged the many Blessings that we received in 2005 to the only p person responsible for all these blessings, Jesus Christ! Recently I was told by one of my most faithful customers (whom I’ve never met face to face) to quit writing my newsletters in such a positive tone, as he wants to believe what I have said in the past newsletters! The last couple years have not been kind to anyone trying to make advice concerning the future of the wool markets. I am guilty for trying to keep my newsletters as positive as I can. After all part of my job is to try to give my customers a reason to stay in the business and that’s not easy when you had the worst drought in decades looking you face to face and the coyotes are at every corner! But you know what, the rains came and we had the best lamb prices in history just this past fall. When I read articles like the one listed at the top of this newsletter, I feel compelled to share that information with everyone! The wool market later this spring may or may not be higher, but one thing is stressed in several of those articles and others that I didn’t share with you, is that wool buyers are paying more for quality, well prepared and fully tested wools including length and strength testing! I feel strongly that this is the main reason why Roswell Wool has been so successful, is that we are committed to providing all the information possible on ALL lots of 3,500 lbs or greater! Wool buyers know that they will get a fair chance to purchase each lot that we have to offer throughout each year and that those wools should perform as expected because of the extensive testing that we have available for each lot. We at Roswell Wool will continue to strive to be in the forefront of marketing U.S.A. wools, and will always try our best to keep you our valued customer as our #1 priority in assuring you that your wool will be exposed to as many buyers as possible to assure you the best price on any given day! |