Weaker rand pushes wool prices up

29 Apr '10

2 min read

The market strengthened at this week's sale and the Cape Wools' Merino indicator gained 2.6% compared with the previous sale a fortnight ago to close at R61,54/kg (clean). This is due mainly to a weaker rand.

Continued concerns about the Greek economy negatively affected the rand, which at R7,42 was down 2.7% against the US dollar compared with the rate at the previous sale. It was trading at R9,79 against the euro, up 0.6%. A total of 8 842 bales was offered of which 98% was sold. Major buyers were Modiano SA (3 263 bales); Standard Wool SA (2 240 bales); Stucken (1 661 bales) and Lempriere SA (1 039 bales).

Most long fleeces posted considerable gains with some micron categories rising up to 4.6%. Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns were unchanged at R68,75/kg; 19,5 microns were 2,0% dearer at R66,92/kg; 20 microns gained 4.5% to close at R65,25/kg; 20,5 microns were down 1.2% to R62,13/kg; 21 microns rose 1.6% to R62,40/kg; 21,5 microns gained 4.1% to close at R62,94/kg, and 22 microns were 4.6% dearer at R62,72/kg.

No sale has been scheduled for next week, but sales will resume on 12 May when approximately 8 000 bales will be offered.

Cape Wools

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