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International issues continue to affect mohair prices
Sep '10
The third mohair sale of the 2010 winter season ended negatively, with a poor overall sales clearance of just 59% of the 145 896 kgs on offer, at today's sale (28 September 2010). While the overall market indicator closed on R77.88, 2% down from the previous sale, it was still 13% higher than the corresponding sale of 2009.

Deon Saayman, general manager of Mohair South Africa, explains that a continuing strong South African currency against the US Dollar also made competition difficult on today's sale. Added which there was uncertainty from China, which also negatively impacted the adult mohair market.

Once again brokers held back large quantities as a measure of support to the market, which could ultimately end up in the voluntary support mechanism to producers. On the other hand the prices for winter kids and strong adults are not quoted, due to the low sales volumes.

Compared to the previous sale, prices were as follows:
• Young goats (winter) down 6%
• Fine adults down 2%

Saayman says that with the bulk of the mohair already offered for the winter season, the hope is placed on the fact that prices could possibly stabilize at higher levels, later in the season.

Mohair South Africa

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