South African raw wool exports increased solidly in the 2006/07 season to April compared with the same period last season, according to data released by Cape Wools. Export values increased as well, with strong rises in the South African wool price indicator.
South African shorn wool production in the 2006/07 season has been forecast to increase by only 1%, so it does not explain the increase in exports year-on-year.
The increase in exports year-on-year could be affected by a release of stocks to take advantage of higher prices and a gap in world wool supply with a drop in Australia's raw wool offerings.
The top five export destinations for South African raw wool were China, Italy, the Czech Republic, Germany, and India.
The value of South African exports also increased strongly in all micron categories, but increases were greatest in the 18, 20, and 21 micron categories.
The large increases in South African prices follow similar price movements to the Australian market indicator, where the large price gains were driven by strong demand and concerns about world wool supply.
Australian Wool Innovation Limited
marketing@alchempro.com
