Mohair auctions resume, but uncertainty weighs on prices

A total of 77 769kg of mostly goodquality mohair was on offer at the fourth sale of the 2020 summer mohair season, with 95% being sold.

This sale was the first since the suspension of mohair auctions due to the national lockdown to contain the coronavirus disease (COVID-19) pandemic. The uncertainty created in the market due to the pandemic resulted in the average market indicator decreasing 8% from the previous sale to close at R245,90/kg.

Compared with the previous sale, the prices were as follows: kids’ mohair was down 1%; young goats’ mohair was down 10%; fine adults’ mohair was down 11%; and strong adults’ mohair was down 8%.

According to Pierre van der Vyver, general manager of the House of Fibre, market research indicated that there was a strong “discount” perception among consumers due to the pandemic. However, this was partly offset by the “mega-trend” aimed at ensuring the sustainability of the industry.

“The offering was excellent and very fine, with the demand for kids’ mohair showing an upward trend in rand terms. The remainder of the market hovered between unchanged to 2% down, except the 28/29-micron category, which was down 5%.”

The strongest competition was mainly between the two local processors, he said.

The best price of R581,50/kg was paid for a 23,3-micron, 84% cleanyield bale of kids’ mohair, which was achieved by Johan Bosch and his sons Robert and Michael from the Somerset East district.

At the OVK sale, the price of kids’ mohair decreased 3,5% with a market indicator of R426,25/kg and a 100% sale clearance, while young goats’ mohair decreased 4,5% with a market indicator of R272,55/kg and a sale clearance of 100%.

Adult mohair decreased 5,5% with a market indicator of R180,25/kg and a 100% sale clearance.

This brought the overall sale clearance to 100%, and the overall market indicator to R247,12/kg, which was 4,6% lower than the previous auction. According to OVK, there was a definite demand for the finer microns (31 microns and finer). Therefore, special care needed to be taken to separate the finer microns from the stronger ones, OVK said. – Roelof Bezuidenhout