Wool farmers are concerned that a strengthening rand could negatively affect the market but international wool broker Segard Masurel says that, in rand terms, SA wool should be able to sustain the high price levels for the first quarter of the year.
Strong demand for wool, especially fine long wool of 72mm and longer with good tensile strength, and low stock held at mills in China, could mean the US dollar price for wool will remain firm.
Segard Masurel said it was not overly concerned about the recent gains made by the rand against the US dollar, as the “rand could come under pressure again”.
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