The price of mohair has continued to rise on the back of increased demand from overseas markets. The market indicator at the second auction of the 2010 Summer Season in Port Elizabeth rose by 10.7% to close at R95.15 a kilogram. 

The indicator was 33% up on the corresponding sale last year with the highest price fetched being R231 a kilogram for a bale of 25 micron kid hair. In an interesting development, earlier reports showed that a world record price of R98.50 a kilogram has been paid for a bale of adult mohair at this week's mohair auction in Port Elizabeth. 

The bale BSFFH mohair was produced by Richard Herold of Graaff-Reinet and bought by the buyers house Samil. Mohair prices improved by 12% on average at the auction. The kid hair price shot up by 22%, this resulting in broker CMW being bullish about the fibre's prospects this year. 

Last week Mohair South Africa said it was upbeat about the industry's inclusion in the industrial policy action plan of the Department of Trade and Industry. But the announcement by the department led to a flood of questions with no answers forthcoming yet.