Ab­sence of wool from Le­sotho hits lo­cal mar­ket

Farmer's Weekly (South Africa) - - Weekly News Wrap -

The Cape Wools in­di­ca­tor in­creased 146 points to close at R206,14/kg (clean) at the sec­ond sale of Novem­ber, while the Aus­tralian EMI de­clined for three weeks in a row.

Mar­ket de­mand was un­changed, with long and fine Merino wool still in high de­mand, but re­ceipts at bro­ker stores were 39% down com­pared with the pre­vi­ous sea­son, partly due to the ab­sence of wool from Le­sotho.

The rand was 2,9% down against the US dol­lar and 1,2% lower against the euro at the time of the sale, com­pared with ex­change rate lev­els dur­ing the pre­vi­ous sale, ac­cord­ing to Hein­rich Vic­tor, op­er­a­tional man­ager of fi­bre at OVK. In South Africa, wool sup­plies at bro­kers’ stores were still much lower week-on-week and ac­cu­mu­lated stocks were 12,15% lower than for the 2017/2018 sea­son. The largest price in­crease of up to 1,8%, was achieved for the 19-mi­cron and 22-mi­cron seg­ments. The best price of R187/kg was achieved for a bale of 17,3 mi­crons in a BH lot from the clip of Hampton Farms of Cath­cart. The buyer was New Eng­land.

Ac­cord­ing to Aus­tralian Wool In­no­va­tion, Oc­to­ber was gen­er­ally a qui­eter month in the cy­cle, as man­u­fac­tur­ers and brands awaited sales data from re­tail stores for the new au­tumn/win­ter sea­son, be­fore de­cid­ing on any new or­ders.

In ad­di­tion, the drought in Aus­tralia had had a sig­nif­i­cant im­pact on the mar­ket, par­tic­u­larly for China, as the bulk of Chi­nese wool pur­chases fell in the 19-mi­cron to 21-mi­cron range, or the “bread and but­ter” wool types for Chi­nese mills, as th­ese wool types were of­ten used in the man­u­fac­ture of of­fi­cial uni­forms in that coun­try.

As a re­sult of the drought, a large pro­por­tion of Aus­tralian pro­duc­ers who nor­mally de­liv­ered fleeces of 19 mi­cron to 21 mi­cron had been pro­duc­ing fleeces of 16 mi­cron to 18 mi­cron.

Th­ese wool types fell out­side the tra­di­tional spec­i­fi­ca­tions for many Chi­nese mills. Re­search showed an in­crease of around 70% to 80% in the pro­duc­tion of 16-mi­cron to 17-mi­cron wool over the past 12 months. – Roelof Bezuiden­hout

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.