Wool...what will you do with yours...

Location
Suffolk
The wool sales are still taken very seriously where my brother works. Not huge amounts but quality wool all the same.
SS
 

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tepapa

Member
Livestock Farmer
Location
North Wales
L
DB wools price is lower than 2020 auction price. No one knows 2021 until April 2022,
Although you are correct that DB price is lower than the WB auction price. You need to deduct the handling cost from the WB auction price to get to the producer payment price, the DB price to the farmer is before their handling cost so the return to the producer is significantly more selling direct.
 
Wrong again. This is the bit that you still don't get.

BW paid out for 2020 clip, the prices being quoted by DB wools is what they are hoping to pay for 2021 wool, which will be less than the BW auction price. The "other" buyers paid little or nothing for 2020 wool.
BW will not know how much people will get until they sell it and that won't be until April 2022.

BW do not buy wool they sell it and return the value less the handling costs.
Standard who are underwriting the payments obviously think the price of wool is about to rise significantly by paying this amount now. You have to remember they will still have to grade and sort this wool so have significant costs to get it to the same guaranteed quality they can buy from the auction.
I’ve told you before and will only repeat this one more time
For a good number of yearsi haven’t received as much as the DB wools quote
Neither has EVERYONE else I know of
Makes no odds what you say might happen or what might happen when this wool goes to auction
It’s money in the bank that counts
They can quote anything then downgrade it once it’s there
The only way is downwards
If you are getting money out of it somehow good on you
 

Frank-the-Wool

Member
Livestock Farmer
Location
East Sussex
L

Although you are correct that DB price is lower than the WB auction price. You need to deduct the handling cost from the WB auction price to get to the producer payment price, the DB price to the farmer is before their handling cost so the return to the producer is significantly more selling direct.

Wrong again.
You are not comparing like with like.
We don't know what this years auction price is or what the handling costs are.

Until the last year BW returns have been better than the others.
I admit you need a crystal ball to know what will happen in the next 12 months but as I said the odds on prices getting better are good.
 

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