Esperance growers optimistic about wool

That was the case at the Western Wool Centre (WWC) on Wednesday last week with two of Elders' woolgrower clients from the Esperance area proving sale order position made a difference.

Sue and Scott Pickering, Derella Downs and Pyramid Poll Merino Stud, Cascade, and Rod Taylor, general manager of the huge Epasco Farms operation, Condingup, were both there independently at the WWC to see their wool sell.

They know each other well with Mr Taylor principally using Derella Downs bloodlines in the Epasco flock and being a regular buyer for the past six years at the Pickerings' ram sales.

He had purchased their top-priced sale rams this year and last year.

The Epasco Farms operation generates big numbers - 43,000 Merinos, 14,500 lambs and 21,300 ewes being mated on Wednesday and Thursday last week.

Sheep and wool comprise half the operation.

There are also 1150 Angus cattle, bringing between $1400 and $1500 for dry cows at market according to Mr Taylor, and a 2500 hectare cropping program of wheat, barley, canola and oats, plus a forage crop for the sheep.

With basically only the forage crop still to harvest, Mr Taylor could afford to take two days off to drive to Perth to watch the last 228 bales of this year's wool clip be sold.

He said one paddock of wheat had come in at 5.5-6 tonnes a hectare and the rest averaged 3-4t/ha, the canola 1.8t/ha and the oats 3.5t/ha and all good quality.

Barley had been waterlogged and was the only disappointment.

"It's been a really good year," Mr Taylor said.

This year's Epasco wool clip was an example of just how good with annual shearing in October producing 1041 bales.

"That was up from about 987 last year, that's the sort of year it's been, Mr Taylor said.

"That increase was just due to seasonal factors," he said.

"We're building numbers now - we're keeping every pregnant animal we can on the property - but the extra wool this year was just from increased cut."

The wool averaged 21-22 micron - "what you expect with the sort of country we're on", a 95 millimetre fleece staple length, 55-60mm for the lambs wool and an average fleece yield of 70 per cent and up to 75pc for lambs.

The Pickerings completed their harvest of 2000ha the day before the wool sale and flew from Esperance that morning, very pleased with the result.

"It was our second best harvest ever," Mr Pickering said.

"The (Cascade) region is producing 3.5-4t/ha wheat crops.

"Our protein was up to 12.7pc, that's where running sheep plays an important role in the cropping program."

The Derella Downs and Pyramid Poll Merino Stud celebrated its 21st birthday this year and the Pickerings' October shearing completed the second cycle of shearing three times over two years.

They fit shearing 5000 Merinos in March, October and July - spread over two years - around lambing, seeding and harvest each season.

"We only crutch every two years and it (shearing more frequently) makes general farm work easier - the sheep are easier to handle and are healthier and seem happier not having that great hunk of wool hanging off them," Ms Pickering said.

Their seven-month shearing produced 96 bales of 19-micron wool with a staple length averaging 75mm and yield of 76pc.

Mr Pickering proudly pointed to an average staple strength of 66N/kt as a further indicator of how good their season was.

Elders broker Rob Young alerted the Pickerings and Mr Taylor before the sale that the market had retreated since the previous sale the week before, after achieving the best prices in five years for 18-19.5 micron wools on two consecutive sale days.

There was a strong chance the WWC would follow Melbourne and Sydney prices down, particularly with just over 6000 bales on offer that day, Mr Young advised.

The bellies, stains, crutchings, oddments and pieces sold first to strong bidding.

The Pickerings' four lots sold to a top of 916 cents a kilogram greasy for belly wool.

Fourteen of the 17 Epasco lots sold to a top of 919c/kg for pieces.

When the fleece wool came up for auction the Pickerings' nine lots were the first up, and that turned out to be a distinct advantage.

Seven lots sold to a top of 1121c/kg with solid bidding competition between Chinatex, Tianyu Wool, Lempriere and Techwool Trading.

One lot of 14 bales was passed in at 1119c/kg and a second lot passed in at 920c/kg.

But by the time the Epasco fleece and lambs wool came up later in the sale, the market had settled lower.

The first three lots of fleece wool sold to Westcoast Wools and Chinatex to a top of 985c/kg, but buyers would not stay the distance on the lamb's wool.

Four lines were passed in at auction, but were sold privately by the end of the sale.

Despite the impact of a significant market correction the Pickerings and Mr Taylor were pleased with their results.

"We took a stab in the dark and pulled our wool out of a sale three weeks ago," Mr Pickering said.

"While the prices were 20-30 cents below the estimate, they were still 150c better than the estimate three weeks ago, and they were bloody good prices.

"It's been a while since we've cracked $11 a kilo."

Later Mr Taylor said he was happy all his wool sold and with his average price across a number of sales.

"I'm very happy, Elders did a good job presenting the wool, there was good competition and we ended up selling everything," he said.

"We've been selling (wool) over the past few months and we've maintained a very good average (price).

"I'm very optimistic about sheep."

Mr Taylor said he was also very optimistic about the future of wool after joining an Elders Wool tour of China earlier this year.

"When you see the new fabrics and the new products being developed for Merino wool - and it's not just wool, Merino is the name everyone wants - it gives you optimism," he said.

"And one of the things we learned on the tour is that China don't hold big stocks of wool, they (woollen mills) are operating nearly hand-to-mouth."