South Africa Mohair Report

MARKET ANALYSIS

The first sale of the mohair winter selling season reflected all the negative aspects what happened in the past two months. The boycott action from China against wool and mohair, caused by the quarantine period of a year against rift valley fever, effectively took onebuyer out of the market. The massive strengthening of the Rand of over 4% against the US dollar also played a major role, coupled to the priceresistance against the relative high prices of adults the past season. From a positive perspective, adults still sells better compared to the previous winter season. Young goats and kids performed well compared to prices of the previous winter season.

Today's sales analysis is as follow: The price of winter kid mohair increasedwith 15.2% and a market indicator of R142.01/kg and a 89% sale clearance; young goat hair wasunchangedwith a market indicator of R96.31/kg and a sale clearance of 97.8% and adult mohair decreased with 12% with a market indicator of R75.73/kg and a sale clearance of 67%. This brought the overall sale clearance to 77.5% and the overall market indicator to R92.89/kg, andecreaseof 5.1%.

MARKET OUTLOOK

The price of adults is still under pressure, caused by the lack of demand from the East as well as from Europe. The demand for fine young goat and kid hair with good length remains excellent. It is very important for farmers then to identify the different fineness correctaswell as the different lengths, because of the price difference. The next sale will be offered on the 7thof September.