Wool prices soars this second week

26 Jan '08

2 min read

Wool prices soared for a second consecutive week despite a large offering and Cape Wools' Merino indicator finished the day up 5,4% on last week at R64,65/kg (clean).

This is a seasonal high and up 15,5% on the opening sale, and 3,7% higher than the previous high of R62,35/kg (clean). The drop in the value of the rand, which was trading down 3,5% against the US dollar at R7,09, contributed to the prices hike. The rand also was 1,9% weaker against the euro at R10,34. The Australian indicator closed 1,3% higher.

In contrast to last week, when the medium wools gained the most, this week saw the finer end of the market posting the biggest increases with 19 microns gaining almost 8%, while 20 microns were up by almost 7%.

This week's offering came to 13 232 bales of which 97% was cleared to the trade. Major buyers were Modiano (2 662 bales), Standard Wool SA (2 454 bales); Chargeurs Wool (2 335 bales); Segard Masurel (1 599 bales), and Stucken (1 520 bales).

Average price movements for AWEX-type fleeces, MF4 and MF5 of 70 and 80 mm were as follows: 19 microns gained 7,8% at R83,90/kg; 20 microns rose 6,8% at R73,52/kg; 21 microns were 6,2% dearer at R66,58/kg; 22 microns were up 6,3% at R64,23/kg; 23 microns increased by 4,7% at R61,27/kg, but there no quotes for 24 microns and 25 microns.

Approximately 8 500 bales will be offered at next week's sale.

Cape Wools SA

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