12 January 2024
The wool price has started the first auction of the year at a promising level.
According to the Cape Wools market report, the price for non-certified wool increased by 4,2% to R160,62/kg, with the price of sustainably certified wool rising by 4,6% to R182,37/kg at the 16th auction of the 2023-24 season.
“After the closing auction in December, the Australian auctions started picking up nicely, and with the last auction we picked up a bit with Australian prices,” says Isak Staats, manager for wool and mohair at BKB.
“The market and market outlook look better, with demand starting to recover. It’s getting colder in Europe now and the wool market is looking better than last year.”
According to Staats, the offering at the last auction consisted mainly of lower-grade wool. A total of 6 567 bales were presented, with 94,8% of the offering sold.
The Australian wool price increased by 0,4% in Australian dollar value compared to the last auction of 2023 held on 15 December. South Africa’s last auction of the year took place on November 28 and 29.
A bale of 16-micron wool with a clean yield of 71,9% and a tensile strength of 43 from the Boesmansnek Wool Growers Association, a shearing house in Lesotho, achieved the highest price of R187,19/kg greasy wool at the BKB auction.
“It is a good performance because Lesotho farmers really farm under difficult conditions,” says Staats. “Apart from being a compliment to the shearing house, it is also a compliment to the farmers who provide breeding material to the Lesotho system.”
According to Staats, the next four auctions are substantial “and we are looking forward to good prices”,
The next auction takes place on January 17, with 13 319 bales being offered.
