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 Wool's price battering continues 

Wool's price battering continues

24/09/2008 5:23:00 PM
The wool market copped a battering at the opening sales of the week, with the eastern market indicator losing 30c/kg on Tuesday and a further 5c/kg today to finish at 861c/kg.

However, such is the volatility and impact of the US exchange rate at the moment, that prices actually rose in US dollar terms by 16c/kg on Tuesday to US726c/kg, according to AWEX.

However, in US dollar terms it today lost 8c/kg to stand at 718c/kg as the dollar eased today from US83.85c to US83.35, which is still considerably stronger than last week when it bottomed at US78c.

The impact has been felt in all three markets, according to AWEX, with 19.9pc passed in over the two days from an offering of 20,298 bales.

After falling 26c/kg yesterday, the northern indicator fell a further 5c/kg today to 908c/kg, while the southern indicator followed up yesterday's 35c/kg fall with a further 5c/kg loss today to now stand at 820c/kg.

In the west, which did not sell yesterday, the market lost 23c/kg today to stand at 822c/kg.

Only the finest wools have escaped the carnage, with anything of 18 micron or over copping price falls of up to more than 50c/kg in some lines.

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Comments


Date: Newest first | Oldest first
This must be AWI and Van Rooyen's fault! Every time the price drops it MUST be AWI's fault. AWGA keep telling us it is, so it must be true. If only AWGA were controlling AWI, the market wouldn't drop like this! Wal and Chick's superpower marketing skills would save the day! (what are those pigs doing with wings?)
Posted by Sir George on 24/09/2008 11:57:06 AM
Dear Sir George, I assume by your abillity to write a comment as soon as it appears on FarmingOnline that you have a desk job.

Let's hope you are not working for a levy payer funded organisation!

We need some solutions fast to get wool going so get back to work and let's see if you can come up with a constructive solution to the problems facing woolgrowers.

Here is your first challenge. Explain to woolgrowers what you would do if there are no viable alternatives available for mulesing at the end of 2010.

Explain your solution in detail and make sure you assume there are no mulesing alternatives that are practical, cost effecient and most importantally prevent fly strike.

If you can answer this, we can all stop the rot and get on with work. If you can't, then listen to woolgrowers.

Posted by time for a change on 25/09/2008 11:57:16 AM
Re: tfac's comments. Nice try at deflecting the spotlght away from AWGA's antics.

Never taken levy funds, don't work for levy-funded company, never have, never will.

But your attempted denigration of people working for these companies is noted. I'm sure they must love working in the wool industry when they hear from people like you.

Back to the topic at hand. AWGA tries to blame AWI for all the problems in the industry - from growers making production decisions to the price paid in the market.

As such AWGA stands condemned of economic stupidity. Take a stand tfac! Dont elect people with no international business or marketing experience. Elect the best people - not your mates and neighbours.

Posted by Sir George on 25/09/2008 2:05:55 PM
Dear Sir George...Just as I thought, you have no sugestions on how to solve the mulesing issues do you? You just want to abuse individuals who are trying to add some common sense to the debate. Your efforts are to deflect the spotlight away from the incompetant handling of this issue by AWI. Well, it's not working. Woolgrowers must vote for a change before it is too late.
Posted by time for a change on 25/09/2008 3:00:51 PM
tfac The article is about the price of wool. If you want to discuss mulesing, start a blog article, write a letter, whatever and I'll be happy to discuss the matter. The topic isnt about mulesing or even about AWI's performance. It is about AWGA's destructive campaign against the Australian wool industry and its constant denigration of AWI. You want to make a change. Fine. But explain how such a negative and partisan group like AGWA can do any good? Changing to AWGA is simply a vote for asinine mediocrity and letting vested interests get control of woolgrowers money.

HL Mencken said it best: "For every complex problem there is an answer that is clear, simple, and wrong." AWGA have very clear and simple solutions to complex wool industry problems. And they are wrong.

Posted by Sir George on 25/09/2008 5:16:53 PM
Wool's problems are not complex at all. The main problem is that that there isn't enough Merino wool for traders to operate profitably in the market. This situation has arisen as a result of the huge cut to production that was forced on us by the Howard government's reckless price cutting from 1998 till 2002. The problem was further exacerbated by drought impacting on an already cash strapped production sector. The rock that wool perished on was the quite bizarre constitution which the Howard government wrote for the WoolStock company. This was never a commercial company. It was a purely political exercise. Anybody who had anything to do with that company should crawl away under a rock and stay there. Three of the current board members of AWI were political appointees on the board of that company. The rest of wool's problems are the result of a very poor understanding in the management of the most fundamental rules of marketing.
Posted by Ted O'Brien on 26/09/2008 7:07:30 AM

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13/11/2008 | Cattle are getting a bad rap these days, so it's refreshing to see Britain's venerable National Trust getting into the business of "conservation cows".
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