Settlement Standard
Commercial financial corrections harmonize grease wool contract values with actual clean fiber weight delivered at the processing mill. Purchasing contracts apply a landed yield adjustment when certified laboratory core test results show variance from preliminary origin yield estimates. Raw wool trade contracts rely on clean wool yield percentages to calculate final invoice prices per kilogram of net clean content.
The financial adjustment mechanism stops applying once commercial settlement terms pass the contractual post delivery deadline.
Yield Calculation
Raw wool bales gain or lose moisture, grease and dirt during ocean transport between origin port and destination mill. Buyers and sellers calculate a landed yield adjustment by re-coring wool lots upon factory arrival and testing clean wool content under standardized laboratory conditions. The recalculation accounts for vegetable matter contamination, residual grease percentage and standard moisture regain allowances defined by international wool trade regulations.
Invoice Correction
Commercial invoices alter final payment balances based on certified arrival testing outcomes. A positive landed yield adjustment credits the seller when clean yield exceeds contract estimates, whereas lower yields trigger a price deduction in favour of the buyer.
Contractual Binding
Standardized trading rules specify acceptable variance thresholds and testing dispute resolution pathways. Applying a fair landed yield adjustment protects both trading partners against freight weight shifts and origin sampling errors.