February 14, 2020
BKB-wool-store

Wool Market Report – 13 February 2020

On the 19th wool auction of the 2019/2020 sale season, the merino wool market indicator increased by 0,4% to close on 17806c per kg clean wool. The average clean wool market indicators for good quality long fleece wool (MF4/MF5) with a tenstile strength of 35 (NKT) were as follows:

Fibrediameter (µ) CWP*   PM** Fibrediameter (µ) CWP* PM**     *Clean wool price

**Price movement

 

18 µ 19538  (+0,3%) 21 µ 17563 (+0,7%)
19 µ 18246  (-2,2%) 22 µ 17858 (-0,8%)
20 µ 18081  (+0,8%)

The key buyers from the previous sale were: Lempriere S A (1,652 bales), Standard Wool (1,581 bales), G Modiano (1,007 bales) Of the 5,181 bales offered 4,899 bales were declared sold (94%).

Highest prices achieved on the BKB auction were as follows:

TOP 10 BKB PORT ELIZABETH
  Area Descr. AWEX Type Mic Clean NKT Price
1. JMP Webber Grahamstown AH MWF4E.78 16.6µ 71.0% 48 16000c
2. J.Whipp Memel AH MWF4E.110 17.5µ 72.2% 40 15250c
3. Neethoek Bdy Smithfield BMY MF5S.62 16.6µ 71.2% 41 14910c
4. Stefan Naude Trust Hanover AH MWF4S.95 17.9µ 71.7% 38 14870c
5. JMP Webber Grahamstown NKS MF5S.92 18.1µ 72.4% 42 14700c
6. J.Whipp Memel AM MF4E.91 19.8µ 73.9% 37 14610c
7. JMP Webber Grahamstown BFF MF4E.72 17.1µ 67.7% 51 14610c
8. JMP Webber Grahamstown AFF MF4E.93 17.8µ 70.5% 48 14500c
9. J.Whipp Memel AMY MF4E.100 18.8µ 73.5% 38 14480c
10. J.Whipp Memel AFY MF4E.94 18.8µ 73.4% 42 14470c

The next auction will take place on the 20th of February 2020.

Read full report here.…

February 14, 2020
RFID-equipment-school

School in Grabouw equipped with RFID technology

On 24 January 2020, the De Rust Futura Academy celebrated the opening of its brand new cattle handling facility, equipped with RFID technology, in Grabouw. Some of the events’ attendees included the Western Cape Education Department’s subject advisor for Agricultural Sciences, Albert van Zyl, executive director at BKB, Andre du Toit, and RFID-Experts Africa’s business development manager, Schalk de Villiers.

During the event, the De Rust Futura Academy students were given the opportunity to showcase the newly built equipment. The facility’s equipment was designed, built and installed by RFID-Experts Africa, who also provides the students and school with full training of the 3-Way Cattle Auto Drafter that works with RFID-technology.

This project, which is one of six in the Western Cape, enables the students at De Rust Futura Academy to understand not only the physical element of livestock farming, but the digital element as well. When asked what makes this technology unique and beneficial for both commercial and stud farmers, Schalk said:
“The system is fully integrated with management software so you don’t have to write down any data anymore. It eliminates mistakes. It assists you to identify good performing animals as well as bad performing animals, and it helps you to select your top performers fairly quickly. Also with problems like Foot and Mouth Disease, what this technology does is it logs all vaccinations, it logs your dipping records and it can also be transferred into the software and it keeps a full record of all the animals that have been treated for that specific disease and this makes it credible as it can also be uploaded onto a blockchain in the future.”

February 12, 2020
Mohair-Report-BKB

Mohair Market Report – 11 February 2020

The first auction for 2020 took place today and all clips on offer sold very well. Kids on average were 2.0% higher with the Young goats at 3.0% higher than on the previous auction in December 2019. Fine Adults performed exceptionally well and was on average 6.0% dearer. Strong Adult mohair also sold very well and was 2.0% higher than the previous auction. The average market indicator traded 4.0% higher at R227.73/kg.

BOKHAAR MARKAANWYSER / MOHAIR MARKET INDICATOR

KIDS R 426.12 +2.0%
YOUNG GOATS R 269.40 +3.0%
ADULTS FINE R 219.57 +6.0%
ADULTS R 196.92 +2.0%
OVERALL R 227.73 +4.0%

BESTE PRYSE/BEST PRICES (8KB)

KIDS: (25-30 mikron)

PRODUSENT/PRODUCER AREA TlPE/TYPE PRYS/PRICE
BKB BINS PORT ELIZABETH CSFFSK (23.1) R 530.00/ kg
UITKYK BDY TRUST WILLOWMORE BSFK (24.5) R 526.00/ kg
MJ MULLER CARNARVON CSFFK (21.8) R 521.00/kg
GEMIDDELD/AVERAGE TOP20 KIDS R466.00/kg
 YOUNG GOAT : (28-34 mikron)
 PRODUSENT /PRODUCER  AREA  TlPE/TYPE  PRYS/PRICE
DCLOUW ADELAIDE AFYG (28.5) R 345.10/kg
P&J LE ROUX BDY FORT BEAUFORT CSFH (28.6) R 345.00/kg
JW NEL& SONS SOMERSET EAST CFYG (29.5) R 318.10/kg
GEMIDDELD/AVERAGE TOP20 YG R299.00/KG
 ADULTS : (32-40 mikron)
 PRODUSENT/PRODUCER  AREA  TIPE/TYPE  PRYS/PRICE
BKB BINS PORT ELIZABETH BFFH (30.8) R 295.00/ kg
CANARYFONTEIN ADELAIDE BFH3 (30.7) R 266.00/ kg
DCLOUW ADELAIDE BFH (31.1) R 260.00/ kg
GEMIDDELD/AVERAGE TOP20 ADULTS R252.00/KG

  Congratulations and thank you to all our producers for continuous support

View full report here.

February 6, 2020
wool-market-report

Wool Market Report – 6 February 2020

On the 18th wool auction of the 2019/2020 sale season, the merino wool market indicator increased by 1,6% to close on 17741c per kg clean wool. The average clean wool market indicators for good quality long fleece wool (MF4/MF5) with a tenstile strength of 35 (NKT) were as follows:

Fibrediameter (µ) CWP*   PM** Fibrediameter (µ) CWP* PM**     *Clean wool price

**Price movement

 

18 µ 19486 (+1,0%) 21 µ 17438 (+0,6%)
19 µ 18656 (+1,9%) 22 µ 17994 (+4,2%)
20 µ 17932 (+0,5%)      

The key buyers from the previous sale were: Standard Wool (1,699 bales), G Modiano (1,664 bales), Lempriere S A (1,530 bales) Of the 6,074 bales offered 5,782 bales were declared sold (95%).

Highest prices achieved on the BKB auction were as follows:

TOP 10 BKB PORT ELIZABETH
  Area Descr. AWEX Type Mic Clean NKT Price
1. Baviaanskrans Bdy (Pty) Ltd Cookhouse CL MWF4E.78 16.6µ 72.2% 48 15810c
2. Paardeplaas Bdy (Pty) Ltd Wakkerstroom BH MWF5E.78 16.4µ 67.7% 36 15180c
3. WP Van Aardt Cookhouse AH MWF4E.91 16.9µ 68.1% 45 15160c
4. Uitzight Bekker Bdy Bk Smithfield AH MWF4E.92 17.8µ 72.0% 33 14860c
5. Paardeplaas Bdy (Pty) Ltd Wakkerstroom AH MWF5E.91 16.8µ 66.8% 41 14860c
6. Kojo Bdy (Edms) Bpk Amersfoort CL MWF5S.65 16.4µ 67.7% 48 14810c
7. Keun en Seun (Pty) Ltd Middelburg CFY MF4E.55 16.6µ 69.7% 46 14490c
8. Paardeplaas Bdy (Pty) Ltd Wakkerstroom BFY MF4E.71 17.6µ 70.0% 59 14400c
9. Keun en Seun (Pty) Ltd Middelburg BFY MF4E.60 17.2µ 70.5% 52 14270c
10. NKD Bdy Bk Riviersonderend BH MWF4S.71 16.9µ 67.5% 40 14200c

The next auction will take place on the 13th of February 2020.

Read full report here.…

January 31, 2020

Wool Market Report – 30 January 2020

 On the 17th wool auction of the 2019/2020 sale season, the merino wool market indicator decreased by -0,5% to close on 17463c per kg clean wool.

The average clean wool market indicators for good quality long fleece wool (MF4/MF5) with a tenstile strength of 35 (NKT) were as follows:

Fibrediameter (µ) CWP*   PM** Fibrediameter (µ) CWP* PM**     *Clean wool price

**Price movement

 

18 µ 19290 (+0,9%) 21 µ 17338 (-0,7%)
19 µ 18316 (-1,4%) 22 µ 17267 (-0,7%)
20 µ 17841 (+0,6%)      

The key buyers from the previous sale were: Standard Wool (2,586 bales), Lempriere S A (1,786 bales), G Modiano (1,785 bales) Of the 7,059 bales offered 6,854 bales were declared sold (97%).

Highest prices achieved on the BKB auction were as follows:

TOP 10 BKB PORT ELIZABETH
  Area Descr. AWEX Type Mic Clean NKT Price
1. Moorcroft Trust Adelaide BBH MWF4E.78 14.9µ 66.9% 31 15400c
2. Loskop Farming Enterprise CC Barkly-Oos BMY MF4S.100 17.3µ 73.5% 42 15310c
3. SD & GP Naude Rhodes AFH MWF4E.86 18.7µ 78.4% 48 15200c
4. Moorcroft Trust Adelaide AH MWF4S.84 15.3µ 67.4% 33 15190c
5. HB Kruger Burgersdorp CMY MF4E.68 16.7µ 71.5% 31 14920c
6. SD & GP Naude Rhodes AMH MWF4E.96 19.8µ 78.5% 53 14800c
7. Aquvadis Bdy (Edms) Bpk Barkly-Oos BBH MWF4S.84 17.8µ 72.7% 37 14500c
8. Boegoema Bdy Stellenbosch AH MWF4E.84 17.1µ 70.1% 32 14500c
9. JA Griesel Springfontein CH MWF4S.60 16.2µ 70.2% 45 14500c
10. SD & GP Naude Rhodes BH MWF5S.75 18.2µ 75.7% 49 14410c

The next auction will take place on the 6th of February 2020.

 …

January 27, 2020
bkb-wool-market-report

Wool Market Report – 23 January 2020

On the 16th wool auction of the 2019/2020 sale season, the merino wool market indicator decreased by -1,1% to close on 17544c per kg clean wool.

The average clean wool market indicators for good quality long fleece wool (MF4/MF5) with a tenstile strength of 35 (NKT) were as follows:

Fibrediameter (µ) CWP*   PM** Fibrediameter (µ) CWP* PM**     *Clean wool price

**Price movement

 

18 µ 19112 (-0,4%) 21 µ 17454 (-0,4%)
19 µ 18582 (-0.5%) 22 µ 17384 (-2,5%)
20 µ 17732 (-1,4%)      

The key buyers from the previous sale were: G Modiano (3,259 bales), Standard Wool (2,819 bales), Lempriere S A (2,091bales) Of the 11,012 bales offered 10,760 bales were declared sold (97%).

Highest prices achieved on the BKB auction were as follows:

TOP 10 BKB PORT ELIZABETH
  Area Descr. AWEX Type Mic Clean NKT Price
1. CF Swart Barkly-Oos BFH MWF4E.80 17.0µ 76.2% 36 16280c
2. CF Swart Barkly-Oos AFH MF4E.96 18.2µ 78.4% 41 16060c
3. PD Roets Barkly-Oos AFH MWF4E.94 18.4µ 76.0% 40 15680c
4. RJ Swart Barkly-Oos AFH MWF4E.93 18.0µ 75.5% 43 15650c
5. PD Roets Barkly-Oos AAFH MWF4E.106 18.9µ 78.2% 37 15510c
6. RJ Swart Barkly-Oos BFH MWF4E.81 17.3µ 72.8% 40 15400c
7. TR Swart Barkly-Oos BFH MWF4E.81 17.7µ 73.3% 47 15350c
8. SB Bastard Cedarville BFY MF4E.83 17.0µ 73.1% 45 15210c
9. CF Swart Barkly-Oos BKSY MF5E.91 18.1µ 73.5% 42 15200c
10. GMC Orpen Barkly-Oos AFFY MF4S.90 16.5µ 69.7% 42 15000c

The next auction will take place on the 30th of January 2020.

 …

March 5, 2019

Reduce supply to lift Merino prices

The Merino wool industry is basking in high prices and has been for a number of years. Mecardo took a look at the effect of supply on the price of wool.

Figure 1 shows the AWTA test volumes for 20-22 micron from 2005-6 through to the current season (which is an estimate). It shows the volumes falling from around 1.2 million bales to around 600,000 bales in recent seasons (a fall of 50%) with another sizeable fall this season.

To look at a price, a price ratio for the 21 MPG to the Cotlook Index has been used. The idea behind this is to account for some general apparel fibre price cycles and movements through the cotton price. The price ratio starts off around 5 and finishes around 9.5, with a strong rising trend. 2011 is an aberration, as the cotton price rose to break the peak level last reached in the American civil war, some 146 years earlier.

A trend in the wool to cotton price ratio can be developed as a guide to dominant changes in wool prices (in relation to other fibres – in this case cotton) during the past 13 years. Figure 2 shows the calculated trend in the wool to cotton price ratio overlaid on the 20-22 micron volumes for that period. As supply has fallen, the price ratio has trended higher, with supply accounting for about 85% of the change in the price ratio.

So, supply has been the dominant factor in the rising value of the 21 MPG in relation to cotton. Here is where some interesting “what if” scenarios can be developed. What if the supply of 20-22 micron wool had remained around 1.2 million bales (with a flock around 90-100 million sheep)?

We can use the trend, which is driven by supply, to adjust the price ratio and through that the 21 MPG for this scenario of an extra 800,000 bales of 20-22 micron wool. Figure 3 shows the actual annual average of the 21 MPG since 2005-6 (with the average to date for the current season) along with a price series adjusted for the change in supply. It shows prices would more likely have been in the 800-900 cents range from 2014 through 2017 and then lifted strongly to trade in the 1400-1500 cents range this season.

This scenario is only theoretical; the supply has gone and is unlikely to return, so the trend price effect is likely to stay. The point is, before the wool industry gets all self-congratulatory about demand creation and the like, it needs to understand how a lot of the current high prices have been won – by shrinking the supply, therefore, the industry.

Source: Mecardo

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