Another hike in wool prices - Cape Wools

20 Jan '11

2 min read

Wool prices posted another huge increase at this week's sale and Cape Wools' Merino indicator gained 8.4% to close the day at R76.50/kg (clean wool).This is 32% higher than the opening level and up by almost 18% on the same sale last season.

The increase is in line with the Australian market where the indicator rose to its highest level in 18 years. Continued strong demand for fine and the better style wools, particularly from Europe, and supply concerns are the main driving forces.

The rand, at R6.86, was down 1% against the US dollar. It was also 4.5% weaker against the Euro at R9.23.

A total of 13 614 bales was offered of which 98% was sold.

Major buyers were Standard Wool SA (4 316 bales), Modiano SA (4 230 bales), Lempriere SA (2 151 bales) and Stucken (1 856 bales).

The finer wools (20 microns and finer) posted the largest increases with 19 microns (MF5) fetching over R100/kg on average.

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns gained 13.4% to R104.12/kg; 19.5 microns rose 12.7% to close at R94.06/kg; 20 microns were 7% dearer at R80.99/kg; 20,5 microns rose 8.5% to R76.97/kg; 21 microns strengthened by 8% to R75.29/kg; 21.5 microns were up 9.1% at R74.62/kg and 22 microns were 4.6% dearer at R70.01/kg.

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

Cape Wools SA

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