Weaker Rand pushes wool prices up

04 Dec '08

2 min read

A weaker rand compared with the previous sale, had a positive effect on this week's sale, and Cape Wools Merino indicator ended the day 4,2% up on last week at R47,22/kg (clean).

The rand had lost ground against major currencies and at R10,27 was 4% weaker against the dollar as fears about the global economy continues to haunt markets. At R13,02, it also was 1,5 % down on the euro.

There was keen bidding for finer wools, particularly lambswool, which were in short supply, and prices for these types rose substantially.

The medium wools were also dearer.

A total of 10 305 bales was on offer, of which 97% was sold. Standard Wool SA, which exports mainly to China, once again was the top buyer, taking up 3 023 bales. Other major buyers were Modiano (1 574 bales); Chargeurs Wool (1 539); Lempriere AUS (1 424 bales); Segard Masurel (1 296 bales) and Stucken (1 147 bales).

Average price movements for AWEX types MF4 and MF5 of 70 mm and 80 mm were as follows: 19 microns rose 7,8% to R64,90/kg; 20 microns gained 4,8% to R53,03/kg; 21 microns were 3,5% dearer at R48,90/kg, and 22 microns were up 3,1% to close at R47,32/kg.

Approximately 11 500 bales have been rostered for next week, which is the final sale before the Christmas break. Sales will resume on 14 January.

Capewools

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