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Business
News
Year ends with a whimper
WOOL
REPORT
Damien Whiteley
THE Australian wool market
wrapped up the 昀椀nancial year
with what ended up being a
fairly benign effort.
The market dropped 18
cents in local currency, 10 US
cents and 8 Euro cents.
Demand continues to be
lacklustre at best and even a
small supply struggled to generate any real optimism in the
auction room.
Some overseas buyers obviously thought that they would
sit back and see if they could
bear the market down, even
though nobody is complaining
about prices being too high,
they still want to get a win it
seems.
Growers responded accord- an informed decision at pres- usual, so finding an empty
ingly by withdrawing and ent and they do not like to be box to put goods into is just
passing in enough wool to leading the race when the des- as challenging as 昀椀nding a slot
on a ship, and of course the rail
stop the rot and the market tination is unknown.
was more or less unchanged
The evolution towards costs have risen accordingly
on the second day of selling online selling has taken off in as they do.
this week.
China more than many other
Some of the shipping
The first selling day had markets, but this has led to squeeze is attributed to Amerseen a decrease in prices of some changes in the supply ican importers rushing to get
20 to 30 cents as many of the chain which are proving to be products into the States before
major players sat back and a challenge.
new tariffs come into force,
watched each other to see who
In previous seasons some of but the newly imposed tariffs
would blink 昀椀rst.
the large retailers and whole- really only affect something
They couldn’t sit on the salers in the market would like 4 per cent of Chinese
sidelines for too long, how- place a large bi-annual order goods going to America.
ever, with the four-week fore- for a few hundred thousand
Others suggest importers
cast showing less than 40,000 sweaters and that would pro- in America are rushing to 昀椀ll
bales per week in the first vide a market signal for price, their warehouses earlier than
couple of weeks in July, com- colour, delivery time as well normal, perhaps in anticipation
pared to 50,000-plus in previ- as micron required, so the of stronger demand, accordous years, and of
ing to Niki Frank,
course the annual
CEO of DHL
From
now
until
the
recess
will
be
three-week recess
Global Forwarding
a bit like treading water as far as Asia Paci昀椀c.
looming in late
July.
Having the peak
prices are concerned
Even though
shipping season
early stage procome forward
cessors are slowing down early-stage processors and by a full month has caused
as usual at this time of year, the traders could work from ocean freight rates to soar, in
given that they have produced that and extrapolate to other turn leading to higher prica lot of their orders, and allo- corners of the market as well. ing on those goods, presumcated greasy wool against most
Now with small bit-play- ably driving up prices at retail
which are still pending, mill ers operating over the inter- and, therefore, maintaining
production schedules do not net the ordering is much more the sticky in昀氀ation that every
have an end date, so greasy dispersed and is not providing Reserve Banker around the
wool for August and Septem- the market signals as clearly. globe is trying to get rid of.
ber processing must be secured
Throw in in some signi昀椀cant
Across the pond in Europe
now before the recess.
shipping challenges for those things are not a lot better. The
Given the dearth of greasy few export orders still pending Pitti Filati yarn exhibition was
stocks anywhere along the at present and life as an ear- held in Florence, Italy and
pipeline early-stage process- ly-stage processor in China is drew a very large attendance
ing mills cannot afford to stop not a lot of fun at present.
from around the world.
buying at least their usual minThe cost of sending a box
It remains to be seen just
imum weekly requirement in of wooltop or yarn from Asia how many serious buyers were
each of the next four weeks, to Europe has increased sig- there, and how many were just
and most likely a bit more to ni昀椀cantly in recent weeks, as tyre kickers, but some attendwell as taking an extra two ees report not a lot of positive
cover the recess.
Chinese mills would dearly to three weeks on the scenic news, some report some early
love someone from another route around Africa rather than signs of green shoots beginning to appear, and some
market to fire up and give through the Suez Canal.
them some insight into what
The longer transit times report sales into next year as
the new season will be like, mean that containers are not a result of their visits.
as they are struggling to make being returned as quickly as
Like all such gatherings, it
‘
Longer transit
times around
Africa are
adding to the
pressures –
and costs – of
exports.
represents a good opportunity
for suppliers to visit clients,
manufacturers to showcase
what they can deliver for
the new season, which is
just around the corner now,
but mainly focussing on the
2025/26 range, and just a good
excuse to have a chat with likeminded individuals.
Japanese of昀椀cials are seemingly primed to intervene in
their currency shortly or alternatively increase the of昀椀cial
WEEKLY SALES
Tuesday - Powranna
Prime Cattle - 10am
Sheep & Lambs - 20 mins after
conclusion of cattle sale
Powranna delivery curfews:
Monday - All Stock 8am - 7pm
Tuesday - Cattle by 8am, Sheep &
Lambs by 9am
For all Powranna sales please ensure
your NVD is consigned to:
Address: Nutrien Livestock C/- TLX 73 Powranna Rd, Powranna, 7300
Destination PIC: MAEV0510
For more details contact TLX Manager
Andrew Palmer - 0400 740 205
Thursday - AuctionsPlus TAS Sheep
Friday - AuctionsPlus TAS Cattle
UPCOMING SALES
Powranna Store Cattle Sale
Thursday, 18th July
interest rate to support the Yen.
China seems to be more
comfortable letting their currency decline in value, boosting exports and at the same
time they continue to tweak
the apartment buying rules to
breathe some life back into
their property market.
Elsewhere, Reserve Bankers
are stridently pushing back on
any market expectations for a
cut in rates as most governments seem more determined
to throw out sweeteners to constituents for short-term gain
rather than focus on the longer-term picture of reducing
in昀氀ation.
This is certainly not helping
the textile industry as we wait
for consumers to pick themselves up off the carpet and
tend to their wardrobe again.
From now until the recess
will be a bit like treading water
as far as prices are concerned
with the real improvement
postponed until the 4th quarter unless something remarkable happens.
Damien Whiteley
District Wool Manager
AUCTIONS
Online Earthmoving & Quarry
Machinery Auction AuctionsPlus #123720
Acc: JG & EA Doddridge, Marion Bay
Starts: Monday, 8th July at 10am
Ends: Tuesday, 9th July at 7pm
Caterpillar D7H & D7F Bulldozers,
Caterpillar 950 Loaders, Caterpillar
322B & 322C Excavators, Caterpillar
433C Road Roller, Caterpillar 120G
Road Grader, Hazemag Impact
Crusher, Chieftain Powerscreen, 2022
DGA Generator, Buckets, Rippers,
Root Rake, Cougar 150hp Diesel
Engine, 1,500L Trailing Fuel Tank
Kevin Matkovich - 0417 325 936
Rodney Batchelor - 0419 892 582
AUCTION TERMS
Photo ID is required to register as a bidder. All items are
sold GST Exclusive - GST may apply. No Buyers
Premium. For a full list of auction items, photos, terms &
conditions visit www.nutrienagsolutions.com.auring-sales
Need eID Tags? We have you covered!
CONTACT YOUR LOCAL STORE FOR MORE DETAILS
For All Enquiries Contact Your Local Nutrien Ag Solutions Store
P: 03 6391 6555 | E: livestocktas@nutrien.com.au W: NutrienAgSolutions.com.au
Nutrien Ag Solutions - 418 Evandale Road, Western Junction TAS 7212
TASMANIAN COUNTRY Friday, July 5, 2024 17
