Wool market up despite strong currency

18 Mar '10

2 min read

Wool prices lifted at this week's sale despite a s tronger rand and Cape Wools' Merino indicator gained 2.2% to close at R63,79/kg (clean). Factors that contributed are an increase in Australian prices, imp roved interest from Europe, supply concerns in China and the fact that this week's sale was a fairly small one.

The rand was trading at R7,28 against the US dollar, an appreciati on of 1.1% compared with last week, while it was a marginal 0.4% weaker against the euro at R10,04.

The offering comprised 6 530 bales of which 97% was sold. Major bu yers were Modiano SA (1 922 bales); Standard Wool SA (1 657 bales) and Lempriere SA (1 293 bales).

Wool receipts into brokers' stores up to mid March are up 3.2% com pared with the corresponding period the previous season, which may indicate a slight increase in production this season.

Average prices for good top -making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns gained 0.6% to close at R70,25/kg; 19,5 microns were 2.6% dearer at R68,8 6/kg; 20 microns were virtually unchanged at R65,03/kg; 20,5 microns were up 1.5% at R63,76/kg; 21 microns were 2.1% dearer at R62,92/kg; 21,5 microns gained 1.7% to close at R63,51/kg, and 22 microns rose 3.2% to R64,39/ kg.

No sale has been scheduled for next week. Sales will resume on 3 M arch when approximately 9 500 bales will come under the hammer.

Cape Wools

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