Another solid increase in wool prices

21 Jan '10

2 min read

Wool prices posted another solid increase at this week's sale and Cape Wools' Merino indicator gained 3% to close the day at R65,11/kg (clean). This is up 21% on the opening sale and represents a 7% increase over two weeks. The market is still being driven by strong demand from China, now also with some support from India. A high sales percentage was again recorded. Of the 15 696 bales on offer, 99% was sold.

Wool receipts to date at brokers' stores are up 4.3% compared with the corresponding period last season. The rand was trading at R7.43 against the US dollar, down 0.6% compared with the exchange rate at the previous sale. It was trading at R10,53 against the euro, which was an appreciation of 1.7% compared with the previous sale. Major buyers were Standard Wool SA (5 356 bales); Modiano SA (3 623 bales); Stucken (2 971 bales); Lempriere SA (2 102 bales), and Segard Masurel SA (1 560 bales).

Average prices for good topmaking (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns gained 3.1% to R76,27/kg; 20 microns increased by 5% to R68,24/kg; 21 microns were 4.7% dearer at R66,15/kg; and 22 microns were 2% dearer at R64,43/kg. Approximately 8 000 bales will come under the hammer at next week's sale.

Capewools

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