Solid rise in wool prices at resumption of sales

16 Jan '10

2 min read

The first sale after the Christmas recess got off to a good start when prices rose across the board and Cape Wools' Merino indicator gained a solid 4.1% on the previous sale in December to close at R63,20/kg (clean), the highest level this season.

Strong demand from China, supply concerns and a hike in Australian prices, where the indicator jumped 2.4%, helped to push prices higher despite the rand appreciating against major currencies.

The rand, at R7.38, was 1.6% stronger against the US dollar compared with the exchange rate at the previous sale. It was trading at R10.70 against the euro, which was up 3.2% compared with the previou1s sale. A total of 12 455 bales were on offer of which 99% changed hands.

Major buyers were Standard Wool SA (5 825 bales); Stucken (2 236 bales); Lempriere SA (2 003 bales), and Modiano (1 377 bales).

Average prices for good topmaking (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns gained 4% to R73,99/ kg; 19,5 microns rose 1% to R67,63/kg; 20 microns increased by 1.6% to R65,02/kg; 20.5 microns were up 2.7% at R64,22/kg; 21 microns were by 3.6% dearer at R63,20/kg; 21.5 microns rose 5.2% to R63,01/kg and 22 microns were 6.1% dearer at R63,18/kg.

Approximately 15 000 bales will be offered at next week's sale.

Cape Wools' Merino Indicator

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