banner.png

Mecardo Blog

To shear or not to shear, is that the question?

Posted by Robert Herrmann on 18 November 2019

For some time, there have been messages from wool processors that much of the Australian wool clip is too long. If this is true then shorter lots should attract a premium – this would be a normal economic lever to attract more of the type, and if that is the case can wool producers justify the additional cost of two shearings in one year?

To get to the bottom of this issue, a full understanding of the situation is needed. It is normal for suppliers (wool growers) to want to meet customer requirements (processors). At the same time, meeting the “new” requirement cannot increase the net costs to the business unless there is an off-setting increase in income.

Read More

Topics: Wool market / wool price, Wool industry

A supply and currency boosted wool price cycle

Greasy wool prices have weakened in the past couple of months, from high levels, so the natural question is “What is going on?”. This article is an assessment of the background to the current wool market to help understand where prices are likely to go.

Read More

Topics: Wool market / wool price, Wool industry

How do wool minimum price contracts work?

Posted by Matt Dalgleish on 17 October 2018

Markets can be volatile, however there are a number of tools which are available to reduce the risk of adverse price movements. 

There are two predominant strategies to reduce the effect of price volatility when selling wool. These are by using a forward contract or using a minimum price contract (MPC). In this article we examine the MPC, and how it can be used by producers.

Read More

Topics: Risk management, Wool market / wool price, Australian wool industry

Be the first to hear!

The latest opinion, news, reviews and offers

Subscribe to Mecardo's blog to be the first to hear the:

  • Opinion of Mecardo and guest market specialists on the 'hot topics' in markets

  • Reviews of tools and resources

  • News on upcoming webinars, training and other resources

  • Special offers from Mecardo

 

Yes, I'd like to subscribe to Mecardo's blog

Recent Posts

Follow Me