The good demand for finer grades of wool the industry has seen the last year and a half or so is likely to continue, along with sustained strong prices, according to Dr. Ron Pope of Producers Marketing Cooperative, Inc. Pope gave a wool and mohair market update at the semi-annual meeting of the Texas Sheep and Goat Raisers Association in Fort Stockton Feb. 16.

The Australian wool market from August 2007 has shown a steady trend upward in prices, “not huge increases but week on week just a substantial gain . . . all the way through January of this year,” Pope said. The climb came after a three month decline in 2007.
Texas had seen “very decent prices” for its spring selling season last year and “then it started tailing off into June.” But the price rebound observed in Australian wool sales should carry over to the spring sales in Texas and elsewhere in the United States, he said.
“It’s good to see these markets rebound and continue to see a good trend and steady growth over a long period,” Pope said.
Currently the Australian market indicator is at U.S.$4.06, per pound, clean.
“This trend that we’re looking at as far as the growth is reflected in the 24 micron and finer wool types, which certainly includes the majority of wool that’s produced here in Texas,” he said. “The 25 to 27 micron range has seen growth or improvement in prices, not quite as proportional as the finer types.”
Wool coarser than 28 microns has seen flat but stable prices for several years. “There’s just not much movement in those prices on those microns,” Pope added.
U.S. Wool producers benefit with the U.S. Dollar weak against the Australian dollar. “ This creates kind of a double or two-fold increase in your prices that you receive – as the market’s moving up and the dollar gets weaker you get the benefit of both of those movements in terms of what you receive from your wool clip.” Pope said.
Only a few early clips had come into the warehouse in mid-February, but Pope said the quality of the clips he’d seen indicated strong wool with good fiber diameter “maybe just a tick coarser” than usual and relatively little vegetable matter or other contamination. Some of the wool he’d seen had shorter than average staple length.
Mohair
After nearly a year and a half of very strong prices on mohair with good clearances, hair prices began sliding a bit in October 2007. Adult mohair was bringing $3 and maybe a little above that through summer and into early October. Then at a sale in Texas a small lot of hair sold for $2.85 and prices dipped, Pope said.
The South African market remains unchanged. “Their currency was stable and yet they were being offered around 15 cents less than what the market should have been. This has continued and now we see recent sales of shorn adult at $2.70,” he said.
Though its too early to get a read on the spring Texas mohair clip, the fall clip here was “surprisingly free of defect,” he said. “It was probably one of the cleanest fall clips most people can remember seeing,” Pope said.
Demand from first stage mohair processors has dropped due larger than usual inventories of adult greasy mohair or top, he said.
“That’s putting a little bit of pressure on this adult market. Whether these inventories will be cleared by the time the spring harvest is over remains to be seen. Again, currency is playing a factor in the mohair market,” he added.