Bill Tatt: Wool market suffers from Chinese blacklisting abattoirs

Stock and property: Bill Tatt writes about the widespread rain and more in his latest column. Photo: File
Stock and property: Bill Tatt writes about the widespread rain and more in his latest column. Photo: File

Week ending 26/06/2020

Widespread useful rain has followed over recent days as we move past the shortest day and into winter.

In our part of the landscape frost have not been as plentiful or severe as many other winters in the past.

Having said that it is early days with much cold weather still to come.

To my knowledge China has not blacklisted any more abattoirs since the original four, although some analyst suggests there is still more trauma to come from that direction.

While the beef market is suffering from this exposure to some extent it is really the wool market which is taking a hammering at the moment.

In recent times we have become so dependent on Chinese involvement in the wool chain that I for one find it difficult to suggest what our next step should be.

Dubbo Sheep and Lamb Market on June, 22 saw reduced offering of 8000 lambs and 3000 grown sheep. Very few store lambs suitable for re-stockers were on offer.

One significant aspect of the sale was the lack of interest in the heavy export lambs which comprised much of the offering.

One agent told the column that a pen of ideal supermarket trade lamb sold for $200.00 while in the same run export weight lambs possibly six kilogram heavier only reached $196.00.

One significant aspect of the sale was the lack of interest in the heavy export lambs which comprised much of the offering.

Obviously at the moment the trade has only limited options for the heavier grades of lamb.

With much of lamb market in the doldrums it is surprising how well the mutton market has maintained its momentum when old crossbred ewes make more than prime heavy export lambs most people struggle for an explanation.

While the sheep market is still good it has softened slightly in recent weeks. Many beef abattoirs are finding it difficult to source suitable cattle at a price that they feel is sustainable.

One major exporter in the North is at the moment only killing three days a week after having previously dropping 13 shift which in real time relates to the loss of a week plus.

One southern NSW abattoir is reported to be closing for up to three weeks, as that part of the state continues to battle with drought and stock leave the district.

Dubbo agents held a combined store cattle sale on June 19 with about 1400 head on offer which in the main sold very well to a wide field of buyers.