Canadian fur manufacturers benefit from stronger greenback

SANDY PARKER REPORT, VOL. 32, ISSUE 31, OCTOBER 13, 2008
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
Canadian fur manufacturers benefit from stronger greenback
ALMOST OBSCURED BY ALL THE NEGATIVE NEWS COMING OUT OF THE FINANCIAL MARKETS around the world these days is one positive item: the U.S. dollar, in which most of the international fur trade is conducted, has been strengthening.
One sector of the fur trade in particular that is looking kindly at the strengthening of the dollar are Canadian manufacturers who did business at the Montreal fair last May. With their receivables now becoming due, they stand to collect a little more from their American accounts than at the exchange rates then in effect. This would be a reversal of the losses they absorbed in recent years, when U.S. accounts paid their bills in December with greenbacks that were weaker than when they placed their orders in May. Last week, the buck was worth about 10% above what the vendors had expected to receive. While that theoretically should compensate for part of previous years’ currency losses, sales volume at the fair unfortunately was mostly down, a reflection of retailers’ conservative planning for the upcoming retail season.
KOPENHAGEN FUR HAS HAD A “VERY GOOD SALES SEASON with quick clearance of the skins,” sales director Erik Neergaard told SPR last week.”As of today (Oct. 8),” he noted, “93% of the almost 18 million skins have been cleared. From the September auction, with prompt day on Oct. 3, as many as 85% of the skins have already been cleared, so there is no indication that the financial unrest on the world market has influenced the clearance of skins from Kopenhagen Fur.” This was echoed by Pirkko Rantanen-Kervinen of Finnish Fur Sales, who said clearances have been even better than last year at this time. Both North American auction houses also reported excellent clearances.
IN THIS ISSUE:
Dollar Stronger Despite Crisis
Canadians Seen Benefitting
Auction Clearances Called High
Credit Seen Staying Tight
Tax Expands Retail Operations
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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