Weak rand boosts Cape Wools Merino indicator

15 Sep '11

2 min read

Wool prices improved at this week's sale on the back of a weaker currency and a small offering and the Cape Wools Merino indicator gained 1.5% to close at R96,57/kg (clean).

The rand has weakened considerably against the US dollar compared with last week's average rates and at R7,33 was 3.6% down against the greenback. It was 0.6% weaker against the euro at R10,02.

Only 5 050 bales were offered of which 98% was sold. Major buyers were Modiano SA (2 024 bales), Lempriere SA (1 028 bales), Stucken & Co (884 bales) and Standard Wool SA (537 bales).

A record greasy price of R132,00 was paid for a bale of 16,2 microns and a clean yield of 78.9% sold by Perdeberg Boerdery, Trompsburg. This beats last season's highest price of R121/kg greasy. The second highest price achieved was for a bale of 16,7 microns belonging to Gunther Boerdery, Cradock.

The average clean price for the different categories good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns gained 2.2% to close at R117,14/kg, 19,5 microns were up 2.4% to R111,13/kg, 20 microns rose by 2% to R105,41/kg, 20,5 microns were 1.1% dearer at R102,34/kg; 21 microns gained 1.7% to close at R100,84/kg, 21,5 microns were 1.9% dearer at R98,66/kg and 22 microns rose 0.5% to close at R95,32/kg.

Approximately 7 500 bales will be offered at next week's sale.

Cape Wools

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