National Wool Market Review

GREELEY - Feb 5/16 - SNS -- The USDA's latest review of U.S. national wool market conditions was released today.

National Wool Review
Domestic wool trading on a clean basis was at a standstill this week. There were
no confirmed trades.  Spring shearing is starting to take place, as areas of
Washington, Idaho and Utah have already began and more in Nevada will be
starting within the next week or two. Most of the wool will be marketed later in
the spring after it has been sorted and packed.  Currently there is resistance
due to the strong U.S. dollar, though prices remained relatively steady over the
fall and winter months, with a positive undertone looking forward to spring.
Domestic clean wool and confirmed trades are reported on a weighted average
basis. Prices reflect trades FOB warehouse in original bag or square pack,
bellies out, some graded, and 76 mm or longer. No allowance made for coring,
freight or handling fees at the warehouse level to reflect net grower prices (*)
indicates new prices this week. (NA) represents microns not normally available
in this region. Wools shorter than 75 mm typically discounted .10-.20 clean.
Classed and skirted wools usually trade at a .10-.20 premium to original bag
prices.
            US             Fleece         Territory      Texas and
Micron    Grades           States          States        New Mexico
18        80s               None            None            None
19        70-80s            None            None            None
20        64-70s            None            None            None
21        64s               None            None            None
22        62s               None            None            None
23        60-62s            None            None            None
24        60s               None            None            None
25        58s               None            None            None
26        56-58s            None            None            None
27        54-56s            None            None            None
28        54s               None            None             NA
29        50-54s            None            None             NA
30-34     44-50s            None            None             NA
Domestic wool trading on a greasy basis was at a slow this week.  There were
95,000 lbs of confirmed trades.  All trades reported on a weighted average.
Territory States Lamb Wool:  38-57 mm 21 micron 132.00; 38-57 mm 24 micron 1.04.
Bellies: 40-50 mm 25 micron 0.85.
Domestic wool tags are delivered to buyer and reported on a greasy basis:
Number 1 tags        Number 2 tags        Number 3 tags
   .60-.70              .50-.60              .40-.50
In Australia this week, the Eastern Market Indicator was down 15 at 1265 cents
per Kg clean from a week ago.  A total of 44,906 bales were offered with sales
of 89.6 percent.  The Australian exchange rate was weaker by .0140 at .7186
percent of the U.S. dollar.  Australian wool prices are quoted delivered
Charleston, South Carolina.  The current freight rate is .15 cents per pound
clean.  Schlumberger Dry formula is used for yield determination. The 75-85
percent of Australia price range can be used as an estimated value of clean
domestic prices FOB the warehouse and gross producer.  These are estimated
domestic values and may vary depending on current market conditions, yield,
strength, length, colored fiber content, poly contamination, and other quality
factors.
                      Clean Del Price    Change from    75-85 Percent
Micron    US Grade    in U.S. Dollars   Previous Sale    of Australia
  18      80s               5.05            + .03         3.79-4.29
  19      70-80s            4.75            + .01         3.56-4.04
  20      64-70s            4.63            + .07         3.47-3.93
  21      64s               4.62            + .08         3.46-3.92
  22      62s               4.59            + .08         3.44-3.90
  23      60-62s            4.51            + .09         3.38-3.83
  24      60s               ----            -----         ---------
  25      58s               3.60            + .05         2.70-3.06
  26      56-58s            3.30            + .02         2.47-2.80
  28      54s               2.85            + .04         2.13-2.42
  30      50s               2.58            + .01         1.93-2.19
  32      46-48s            2.26            - .01         1.69-1.92
  Merino Clippings          3.79            - .03         2.84-3.22
Eastern Market Indicator closed down 15 at 1265 cents per kg clean. Australian
exchange rate was weaker by .0140 at .7186 percent of the U.S. dollar.
Source:   USDA- CO Dept of Ag Market News Service, Greeley, CO

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