Cape Wools' Merino indicator up

17 Jan '08

2 min read

The first sale after the Christmas recess kicked off on a high note when Cape Wools' Merino indicator rose 6,4% to close at R61,31/kg (clean), pushing the indicator above the key R60/kg level. This represents a 9,6% increase since the opening sale.

For producers this was a welcome turnaround after the lacklustre performance in December when prices weakened slightly, mainly as a result of a strong currency.

The rand was slightly weaker compared with the last sale in December, trading at R6,85 to the US dollar compared with R6,73, and was 1,8% weaker against the euro R10,16

There was strong competition from all sectors of the trade for the 13 514 bales on offer – the second largest offering this season so far – and a sales percentage of 95% was achieved.

The biggest gains were posted in the medium micron categories (21 microns to 24 microns), which saw increases of between 7% and 11%.

Major buyers were Standard Wool SA (2 877 bales); Modiano (2 395 bales), Chargeurs Wool (1 782 bales); Stucken (1 306 bales); ADF (1 277 bales); and Segard Masurel (1 274 bales).

Average price movements for AWEX-type fleeces, MF4 and MF5 of 70 and 80 mm were as follows: 19 microns gained 4,9% at R77,82 /kg; 20 microns rose 7,5% at R68,83/kg; 21 microns were 7,1% dearer at R62,66/kg; 22 microns were up 8,7% at R60,42/kg; 23 microns increased by 11,1% at R58,50/kg, and 24 microns were 8,7% dearer at R54,52/kg. There were no quotes for 25 microns. Approximately 12 000 bales will be offered at next week's sale.

Cape Wools SA

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