Wool prices sprung to life gaining a 1% increase in auction sales of bales on local and international markets. The increase has surpassed a reported R169,11/kg recorded at the end of February by Cape Wools South Africa.
The small spike has been achieved for two weeks in a row, notes the general manager of the National Wool Growers’ Association, Leon de Beer.
Prior to the December break in 2020, 98,2% of 4 574 bales on offer were cleared reaching up close to R144,33/kg on the market.
Sales increases, big or small, should be celebrated following continued disruptions, by the national drought crisis, believes De Beer.
Prior to the Covid-19 pandemic, the sector was battling to find its feet again following the first ban on sales, due to the Limpopo foot and mouth disease (FMD) of 2019.
“Good wools still have a good demand in the world. The prices are not as good as it once was but considering the Covid-19 virus, the international markets and the economy getting on its feet again we are doing quite good,” De Beer says.
Furthermore, 90% of South African wool is exported to China, Egypt, the Czech Republic, India, and Italy, where it is processed for the textile market.
The golden child of the recent spike were Merino sheep, says De Beer.
“Quality merinos have been hot property, the jump is positive for us, good prices are always good for farmers, especially since farmers in the Northern Cape and Eastern Cape struggled through a drought and are still struggling though a drought.
Meanwhile Mohair sales concluded positively for drought-stricken farmers in the production area of the central Eastern Cape and parts of the Western Cape this week says the House of Fibre.
The sale was auctioned at the Port Elizabeth Mohair Exchange.
General manager Pierre van der Vyver notes the average market indicator reached a reported R364,32/kg, who says, “The demand was driven from Europe, with Italy the key player and from the East, with China the key player.”