Home' On The Land : October 6th 2011 Contents www.standard.net.au
THURSDAY, October 6, 2011 ON THE LAND -- 5
WOOL growers could expect
movement in the market within
the next two months, Michell
commercial group chief execu-
tive Steven Read told a Werribee
seminar last week.
Mr Read told the Mackinnon
Project seminar there was
negligible wool inventory in the
industry at any stage.
"The feedback from the fashion
shows in the last couple of weeks
has been very positive for wool,"
Mr Read said.
"However, no one has actu-
ally started placing orders yet,
the market has been sliding,
the currency has been sliding,
everybody's waiting," he said.
"One of two things has to hap-
pen, either people start turning
off factories and they are not
doing it that we are seeing, or
they have to enter the market and
start to buy some inventory.
"That will have to happen in
the near term, you can't process
Mr Read said wool stocks in
the processing pipeline were
expected to last perhaps another
60 to 80 days.
"I think once the market
starts to move up everybody
will say they have missed the
"No one likes to buy on a
falling market and that's what
we have seen in wool since the
season opened," he said.
"The minute it turns and
people get confidence, I'm sure
they (the buyers) will come back
"Buyers are trying to gauge
how much the market might fall
before it turns," Mr Read said.
The likely price change in the
market when buyers return will
depend on how quickly competi-
tion comes to push values up, he
"One thing for sure (is) there
isn't a huge amount of wool
around, so if people have to catch
up on orders and rebuild stocks
they had three months ago it will
put pressure on the market."
Mr Read said there was "not
a chance" that wool prices
would start lower when buyers
re-entered the market.
"They will come in on the mar-
ket on the day, they will work on
today's price for wool and today's
currency and they will buy.
"If two people do that, what is
tomorrow's price? If three do it,
that's how a market lifts."
Some Italian weavers had been
operating in the market recently,
but there was minority of mills
that had started to build inven-
tory for this year's collections,
"The majority will be holding
Mr Read said he was more
optimistic than pessimistic about
wool's market prospects.
"Unless we start to see produc-
tion at the factories start to back
right off and we haven't seen that
"The nub of it is everybody is
sitting on the sidelines waiting,
growers are putting their wool
up to be sold in an unstable
market with a falling currency
and some buyers are holding
back and watching the market
Mr Read said increasing
amounts of wool were being
passed at Australian auctions
and clips were being withdrawn
from catalogues for December or
"This stand-off between the
market and buyers is primed
for the next four to five weeks."
However, Mr Read said with
the supply chain being "so
close" volatility in prices would
continue over the long term given
the state of global economies and
He was amazed that Australian
woolgrowers were not doing risk
management to forward sell even
a portion of their wool clip, but
were doing it for grain.
"The forward selling opportu-
nities for wool in the last eight
months have been fantastic.
"The only way to deal with the
volatility is to do some risk man-
agement," Mr Reid said. FAIRFAX
Wool prices set to increase
The top-priced $900 ram with buyers Rob and Georgie Greig (left and right) and
stud principals Esther and James Glasgow.
111003SH19 Picture: STEVE HYNES
ESTJAM Poll Dorset Stud achieved a
good result at its inaugural on-property
ram sale on Monday, clearing 30 of
the 38 offered for an average price
Stud principals James and Esther
Glasgow saw their top ram bring $900.
Buyers Rob and Georgie Greig, of Eulo,
Caramut, also paid $850 for another
"We've been buying Estjam rams for
about 10 years and we know what we
Mr Greig praised the efforts of the
23 and 25-year-old principals who have
built up the stud from scratch, starting
when they were 8 and 10-years-old.
"It's just what the industry needs ---
some young, enthusiastic people who
can bring some new ideas."
The sale offering included autumn
and spring 2010 rams, all grass-fed
and ready to work under commercial
The volume buyer was Josh Eats of
Coleraine, who bought eight rams.
Mr Glasgow said the result was very
encouraging, showing that buyers held
the stud's rams in high regard.
The sale was conducted by Landmark,
under the steerage of 21-year-old Blair
O'Toole from Landmark Warrnambool,
with Miles Pfitzner of Landmark
Hamilton as auctioneer.
Top ram fetches $900
for Estjam stud at sale
Stockscan figures available ABC Score 4
Andrew Bell sowed 40 ha of UltraFeed at
his Kawalla property in Mockinya.
"Ultra Feed's rapid growth and the
production of abundant quality feed at a
time when other pastures are struggling
means we can fatten and finish our weaned
calves for market without feeding out any
grain. The vealers we grazed on Ultra Feed
topped the local market at sale this year."
The new summer feed option
for the Wimmera
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FOR MORE INFO:
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"the vealers we grazed
on Ultra Feed topped the local
market at sale this year"
MATURITY (flowering date)
SPEED TO FIRST GRAZING
TOTAL DRY MATTER YIELD
SORGHUM X SUDAN GRASS
VIGOROUS AND LEAFY
VERY HIGH OVER NUMEROUS GRAZES
VERY HIGH. VERY FINE STEMS.
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