AGRICULTURAL NEWS - Despite a stronger rand:dollar exchange rate, the South African wool market started the season on a positive note, as a result of strong demand for wool globally, with the Merino Indicator closing at R188,08 (clean).
The Australian EMI also increased 3,5% at the first sale of the new year, which is a clear indication that consumers are prepared to pay a premium for wool products.
China is also once again competing strongly in the processing of wool, according to Pierre de Lange, wool marketing manager at OVK.
“The good start to the second half of the season confirms the consistently good demand for good quality long and fine wool,” Louis de Beer of Cape Wools said.
“The market remained firm across all types and delivered good returns to producers despite the stronger rand.”
With volumes received at brokers’ stores still lagging behind the previous season receipts, competition among buyers was good.
