Fur Market Struggles During Uncertain World Events

Fur Market Struggles During Uncertain World Events

By Troy Hoepker

Covid 19 shutdowns in China, Russia’s savage invasion of Ukraine, oversupply and limited demand have all created the perfect storm to leave the fur market struggling to see an optimistic future this year. Uncertainty is the best word to describe current conditions on the global stage. Covid 19 outbreaks in China continue and their more vigil approach to the pandemic means frequent shutdowns, quarantines and more disruption in consumer buying as well as foreign trade. The world’s second largest consumer of wild fur, Russia, faces enormous economic sanctions, limited trade, an ongoing war and has witnessed the value of their currency, the ruble, be vulnerable to extreme volatility. International auction houses all the way down to country buyers here at home sit on unsold inventory of wild fur while large buyers tighten their purse strings buying small quantities, only enough to fill current orders.

Here in North America we deal with extremely high fuel prices, fur buyers going out of business, high inflation and an increasing war on fur. Canada Goose, one of the world’s leading makers of luxury apparel announced that they would no longer use wild fur. Combatting the “anti-fur” European sentiment from spreading here is imperative. As more companies adopt this policy, promoting wild fur as the best “green” option for consumers becomes more and more important for those of us involved.

We are down to one North American International auction. The Fur Harvesters Auction Inc. (FHA) of North Bay, Ontario is the only large auction house left and hosts two large auctions per year (spring and early summer) along with dealing fur through private sales throughout the year. This year marked the third year in a row that sales for those auctions had to be conducted online because of Canada’s travel restrictions on Covid 19. When buyers can’t see, touch and examine goods it never helps sale prices but the good news this year was that over 300 buyers registered for the last online sale in June.

It has became harder and harder for country buyers to know exactly what sets the market. When we used to have multiple international auctions throughout the year from different auction houses, there was a “base” for trappers and buyers alike to look at internationally for pricing. Now there have been times of price fluctuation more because of the unknown than good reason. It’s hard for buyers to know where to set prices early in the season and hard for trappers to know at what price they should sell. Where the market is heading has also become more of a guessing game. This spring, plenty of buyers were hurt when they couldn’t sell coyote skins for what they paid for them last fall/early winter. Fashion trends, weather, prosperity or lack-thereof drive the supply and demand of the market worldwide and we need a better barometer to show us what needs the market has at different times of the year. Without that barometer in the form of multiple international auctions all at different times of the year it’s hard to find direction in setting prices for wild fur.

Predicting the value of your furs this year is harder than ever other than to say prices paid will be low. Buyers still need to ascertain what prices they can offer for fur once skins start coming in this fall and what price they will be able to sell those skins for at a later date to make a profit that covers operating costs and still make a living. The uncertainty of knowing what the pile of fur they have purchased will be worth later on will lead to low prices and selecting only the best of certain skins. The risk is just too great to invest heavily.

There are some skins that still fetch a lot of money but unfortunately none of those animals exist in Iowa. Western bobcat, wolves, wolverine and marten will all do well this year but unless you plan to trap in other states you’ll come up dry on those in Iowa. Everything we hunt and trap here will suffer to move with much value. Buyers won’t consider a lot of carcass animals and may turn away even a lot of unfinished goods. But they are still interested in the best of skins. The best advice I can give, especially in a year like this, is to trap and hunt when hides are fully prime and prepare those hides to the best of your ability before selling.

Coyote
The last few years, coyote has been leading the values of Iowa fur and helped trappers return profit on the line the most. In January, February and March, coyote prices fell and continued falling. Even prices for the heaviest western pale skins that fetched over $100 last year have now plunged to the $25 range. You can imagine what that means for our mid-western darker, coarser haired coyotes. At the FHA auction held in June eastern coyote sold for a $9.95 average and central coyotes went mainly unsold. Some garment makers suddenly moving away from fur for trimming out parkas have created a backlog of stripped goods and unsold coyote furs held in inventory. The trim trade has partly been sustaining the coyote market for some time. Some say it was only a matter of time till the bottom fell out. It apparently has.

Since coyote is still moving somewhat, your Iowa coyote skins will sell and some think there might even be an ever so slight uptick in the market as we get into next year. There is not quite the backlog of coyote skins as there are with other species although only 60% of even the best lots of coyote pelts sold for a $26.95 average at FHA auction. Not a good sign. The lack of speculators at that price tells you something. But do not be surprised this year when you’re only offered $5-10 dollars for a similar coyote as you sold last fall for $20 or $25.

Raccoon
Eastern raccoon went mainly unsold at FHA auction with western semi-heavy goods only averaging $4.74. Only 13% of those skins even sold, so there are a lot of average coon pelts out there unsold at the moment. Currently there is not much demand for more of those like our Iowa hides to clog the market. You’ll find Iowa raccoon sales similar to last year with carcass coon, green skins and smaller skins mostly being unwanted. The largest fully prime coon may see a five-dollar bill or a little more but those will be for fully finished goods. If you fully finish every coon from the line a generous buyer appreciative of seeing well handled fur may give you a small price for the lot if you can find one. Concentrate on these animals when fur is prime.

Beaver
39,231 beaver pelts were offered at the FHA June auction and most of those sold. Good news for what has been a rough few years for hard working water trappers. Inventory moving is always a good thing but prices look to linger once again this year similar to last year. Expect average skins to sell but sell low with larger well-put up skins possibly fetching $8-10 range. Add another five dollars for extremely large fully prime specimens. The real money in beaver is from Castoreum. Top grade castoreum sold for $120 per pound at auction.

Otter
While only a little over 50% of the 4,656 otter offered at auction sold, it should still be a species worth going after in Iowa this year. Average sale price was $22.81 in June and I think you can expect $15-$20 from your buyer for adult average size skins. Those extra long prime specimens may fetch you an extra $10 bill.

Mink
I’m skeptical to predict male mink will sell at $10 this year like some say may happen. The ridiculous surplus of ranched mink skins that have been lingering for years has lessoned giving hope that demand for wild mink and muskrat will increase. Yet this June’s FHA auction only sold 25% of mink lots offered at a $5.20 average. Last year we thought we’d see muskrat and wild mink demands increase drastically after ranched mink were slaughtered by the thousands in Europe after being infected with the coronavirus. That didn’t really happen; therefore I’m skeptical to say wild mink will increase this year over last year’s price. Expect $7.50 average for males and $3-$4 for females.

Muskrat
Muskrat is showing little demand and for the same reasons mink has suffered so will muskrat this fall. Expect $1.00 for skins showing some damage and $1.50-$3 for nicer rats.

Red Fox
The best red fox has some interest in the market. Unfortunately you won’t find the best red fox fur anywhere near Iowa. Still, renewed interest in the very best pelts of any species is the start of resurgence for lesser pelts down the line. So while that is good news you won’t see prices for Iowa fox begin to improve yet this year. Expect to see $5-$10 for a nice pelt and expect carcass red fox could be rejected.

Bobcat
Interest in bobcat has increased in the last couple of years and market indicators suggest another gain could be seen again this year. The top dollar paid for those prized western cats has dropped but it hasn’t affected the lower end goods, in fact it has went the other way. Locally our cats are flatter furred but there is demand for them currently. Sales at the June FHA auction for our central U.S cats were 100% better than the same sale held the year before, both in price and in the percentage of cats sold. Expect anywhere from $45-$65 for average cats with large males having wider spotted bellies going for 20%-30% better than that.

Skunk
Skunk fur is selling. As you can imagine the low amount of these pelts offered keeps demand relatively active. You could see $10-$15 for a properly handle skunk pelt. Whether that money is worth it to you is another question however!