FHA Wild Fur Market Forecast 2010/2011

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Wild Fur Market Forecast
2010/2011 Wild Fur Forecast
October 14th, 2010

Last year was one of recovery as the global financial crisis hit the fur trade as well as most industries world wide. Of all those affected, China weathered the storm in the best of shape and in turn ended up taking on the largest portion of wild goods in our company’s history.

We attended all the major fur fairs last season, as usual, and it became apparent, beginning with the Beijing Fair, that muskrats were in HIGH demand and other items were going to be softer. It is no secret that our February 2010 Wild Fur Auction realized the strongest selling prices of the season for the majority of wild articles offered.

It is the opinion of most international buyers and brokers that this season should bring about much positive change as long as the global financial situation remains on track and the countries of Russia and China experience a traditional winter. The ranch mink industry realized a record year as prices and clearances were strong from the start to finish. Normally this points to a positive start to the wild fur season, however there is a fair amount of unsold goods remaining on several articles and recovery may come later in the season on these items.

Beaver
We moved beavers at all our sales last season with almost all going to China. Prices were not at acceptable levels but we took the position to move them out in the hopes that those customers taking them on would be successful in creating interest in this struggling article. If these customers are successful, beaver prices will recover even if the results are marginal.

Wild Mink
With ranch mink at such high levels and stock cleared out it is felt that wild mink offered on our first two auctions will advance to levels very acceptable. We have been receiving calls of interest since late summer on this item.

Otter
This item has been gradually working its way upwards from the crash several years ago. Again we are confident that this trend will continue this season and levels could be realized that most would find favorable.

Muskrat
We knew going into last season from early phone inquiries that muskrat were going to be a hot item. This will be the case again this year but we HIGHLY recommend those harvesting muskrats ship them as early as possible as the market could soften as the year goes on.

Marten/Sable
It is believed that sable will be in strong demand and that the better sections and stronger sizes will see increases over last year. We have the finest sable collection offered on this continent and the trade knows this and orders for good sable will be filled at our March 2011 auction held in Seattle.

Red Fox
All ranch fox have been selling VERY STRONGLY in Finland and there is no question this will drive the price of wild fox as well. Since early September inquiries have been coming in regarding expected quantities for our coming auctions.

Arctic Fox
Good demand for clear prime skins. Early caught and low grades will meet resistance.

Cross Fox
Limited production and good interest will keep wild cross fox in strong demand.

Grey Fox
Last season this article was difficult to move, however in past years when the Russian market was booming most of all grey fox sales went to Russia. This could be the case this year as their situation is improving.

Coyote
We are predicting increases on all HEAVY Eastern and Western sections. This is being fueled by the strong trim trade once again. Low grades will remain difficult to move.

Fisher
This is another article that is expected to be of stronger interest this coming season. There is a growing demand for trim items and fisher fills this category. Our auctions outperformed all the competition’s last season and we are optimistic that prices will climb further starting early this season.

Raccoon
FHA had excellent results on our January and February 2010 auctions. Unfortunately these levels did not hold up into the May auction rounds. At which time we took the position to hold to what we felt was a fair market value on the better sections of raccoon. If the market was not met we held the goods back. At this moment in time it seems this was the correct position to take as the trim trade is becoming very active and again the results of the Finnish sales on Blue Fox and Finn Coon have been very strong. This always is a good indicator that raccoon prices will advance. This will be especially true for the HEAVY section raccoon.

Lynx/ Lynx Cat(Bobcat)
These two articles are very dependent on the Russian market. Prices and interest began to rise later last season as Russia’s economy began improving. At this moment in time oil prices in Russia have strengthened and the overall economy continues to advance. If this pattern continues both lynx and lynx cat prices should see increases over last season. Our sales on both these luxury articles realized the highest averages in the world last season. Clear lynx that are spotted will continue to sell best as will lynx cats of the better western sections that are well primed and heavy with clear spotted bellies. We are confident this will improve going forward into this new selling season as both these items are produced in limited volumes. OFF COLOURED LYNX WILL BE VERY DIFFICULT TO MOVE.

Wolf
Our wolf collection represents the finest in the world as the entire NWT/Nunavut Territories sell exclusively through North Bay. As well, Western Canadian’s entire collection is included. Our prices have been by far the highest for years now on wolves that are well handled and complete coming from these northern and arctic regions. As production cannot meet the demand, we expect no changes for such wolves of this caliber. Commercial wolves and those handled poorly and incomplete will sell but at a much lower market level.

Wolverine
This item is a mirror to the forecast described above to Wolves. Again well handled complete skins will bring strong prices throughout the season.

Black Bear
Well handled, prime, complete bears measuring 5ft in length are in good demand, while smaller bears that are incomplete or early caught will be difficult to move.

Grizzly Bear
There is an excellent demand for large well handled prime specimens.

Polar Bear
The vast majority of the world’s Polar Bear harvest is marketed now through FHA. The past few years we have offered this item on our first and last auctions of the year in our facility in North Bay. We have seen priced advance to over $10,000 and our customer base continues to grow as production will NEVER meet the demand for this article. Big bears over 10 ft continue to realize the strongest prices; however, all sizes as long as they are properly prepared will sell very strongly once again.

Weasel
Good demand.

Red Squirrel
Limited demand.