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South African wool production likely to go up in 2013
Jan '13
Wool production in South Africa is likely to increase in 2013, as the industry has recovered from the effects of Rift Valley Fever, the Business Daily live reported.
South Africa’s wool production declined to 44.8 million kg in 2011-12 season from 48.2 million kg registered in 2009-10 season, following the outbreak of Rift Valley Fever.
However, no new cases of the sheep disease were reported last year, according to Cape Wools SA chairman Geoff Kingwill.
According to Cape Wools, the quantity of wool received by traders during the latter half of 2012 increased by 4.5 percent year-on-year.
The first wool auction in 2013 would take place on January 9, when nearly 15,400 bales are likely to be put up for sale in Port Elizabeth.
Prior to Christmas break, the Cape Wools market indicator rose by 25.8 percent than the opening sale in mid-August last year to R109.91/kg for clean bales.
The rise in wool prices was owing to strong demand from China, which bought 48 percent of all South African wool last year.
Cape Wools projects 2013 to be a better year for South African wool prices and demand, based on signals of improvement in the Chinese economy.
The fear of fiscal crisis in the US has subsided to a great extent, and this would also brighten up prospects for South African wool, according to the organization.
Last season, all the 289,689 bales of wool offered at auction were sold for R2.27 billion, up 36 percent compared to the previous season.

Fibre2fashion News Desk - India

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