CMW Wool Market Report 10 January 2018 - Agri SAAgri SA

CMW Wool Market Report 10 January 2018

MARKET ANALYSIS

With the first auction of 2018 over and done with prospects for the year ahead are extremely positive. The price for good quality fine wool gained some 1,5%, while the stronger micron groups traded slightly lower. Poor quality wool on the other hand lost out and shed some3%. Despite the Rand which strengthened 8,5% against the USDollar, the National indicator gained 0,2% and is currently at R188,08 per kg clean-yield.

The highest price for OVK on this week’s auction was R1164.00/kg for a BMY lot of 17.5micron which was achieved by Perdegrasvlei Boerdery of Smithfield. Modiano was the buyer.

FORECAST

Despite the stronger Rand against the USDollar the South African wool-market started the season on a positive note. This is evidence of a strong demand for wool globally. The Australian wool market likewise gained some 3.5% on this week’s auction, which is a positive trend and a clear indication that consumers are prepared to pay a premium for woolproducts over other fibres. China is also once again competing strongly to process wool. The next auction is scheduled for Wednesday 17 January when some 13000 bales will come under the hammer. This report by Pierre de Lange – Wool Marketing Manager : OVK.

 

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