Thursday, March 16, 2017

New Mexico Wool

________________________________________ Mike's Corner I trust this newsletter finds everyone healthy and happy. I’m glad to see the rains in California have finally come, the drought’s broken, and we’re excited that you guys are going to have some green grass out there. I also want to let everyone know, and thank everyone, and ensure everyone that my new position with ASI is not going to affect my performance in marketing your wool. You guys are my customers and friends. You mean the world to me, and I will make sure that your wool will get all the exposure it deserves and achieves the best prices possible. As my motto says, “My integrity is my reputation.” There’s been a lot of news in publications around the country talking about the wool market the past couple to three weeks, that the wool market’s higher and higher, it’s looking better and better, and it is. I want to make that perfectly clear. We definitely have a better market than we did this time last year. However, there are things you need to be aware of. That is this is the first year in several years that the micron of your wool is more important than it has been in the past. For example, 19-20 micron wools this year as of right now will bring anywhere from 15-20 percent more than they did this time last year, but 21-23 micron wools are just 5-10 percent higher than last year on today’s market. And if you move courser, to the 25 micron type wools, those wools, and courser, are actually even to 5 percent less than last year. So, I just stress that micron grade this year is much more important. You’re even actually going to see a case possibly where some guys that pull their short wools this year, their short wool may actually outsell their main line, because nine times out of ten those short wools are finer than their main line and could bring more money just because of the grade. So keep that in mind. Also, our dates for our Spring Sales this year are March 23 and our second sale will be April 25-26. Keeping in mind the finer wools are bringing more money, I would encourage everyone while they’re shearing to do a better job of pulling the course wool off the bottom end of your clip. In other words, fine it up a little bit by getting out some of that courser wool. I’m not saying going after the finer wool. I’m saying get the courser wools out. Try to fine it up from the bottom up and I think you’ll be much better off. We’re definitely seeing more interest from buyers this year. Buyers are calling; they’re wanting to buy wool. They have orders for as much wool as they can get their hands on. And that’s just completely opposite from what we had this time last year. Last year I could sell a load here and a load there. Soon as a guy got his load filled, then the buyers were done. They didn’t want any more, or if it was under 23 micron they didn’t want it anymore. So, it’s a little different atmosphere this year, particularly due to China. The Chinese are back in the market for the first time in two or three years, so, that’s a pleasant sight to have. It also goes without saying, that when wool buyers start showing up at your doorstep it’s usually because they’re trying to buy your wool before the wool prices go any higher, especially when they leave you a greasy price with no core results. This tells me that they have plenty of room and they have a comfort level that the market’s not going to go any lower; it’s going to go higher. That’s the reason they leave these greasy prices laying around. So, I just caution you there to keep your eyes open. Roswell Wool prides itself in offering your wool to the most buyers in the country that are available. In a year like this is when our auction system shines the best. We get the most competition and it’s convenient for the buyers, particularly the foreign buyers, to come to our facility that we have there at Bakersfield. They can load the wool and take it straight overseas. Our Calcot facility there in Bakersfield is becoming an export facility for the entire United States. Buyers are sending their wool there as well to comingle their purchases from other areas. It’s become a very valuable asset, not only for Roswell Wool, but for the California producers and the western half of the country. So, with that, I’ll close and say “Thank You very much” for your friendships, and I look forward to seeing you later in the spring. Thank You. Mike Corn

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