Wool season closes on positive note

10 Jun '10

2 min read

The final sale of the 2009/2010 season saw prices improving and Cape Wools' Merino indicator gained 1.5% compared with the previous sale a fortnight ago to close at R58,71/kg (clean).

Although prices softened towards the end of the season, the market performed considerably better than last season. The indicator remained above the key R60/kg level for most of the season and at the closing sale was up 9% on the opening sale and 25% higher than at the same sale the previous season.

The market peaked at R66,46/kg at end February before losing some momentum over the past week weeks. The rand, although trading in a narrow range, was 1.2% firmer against the US dollar compared with the previous sale, trading at R7,69 against the greenback, and 3,9% stronger against the euro at R9,20.

It was a fairly big offering, totalling of 12 520 bales of which 97% was sold. Major buyers were Modiano SA (4 571 bales); Standard Wool SA (3 288 bales); Stucken (1 660 bales), and Lempriere SA (1 135 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19,5 microns were 3.5% dearer at R64,06/kg; 20,5 microns softened 0.5% to R60,49/kg, and 22 microns were 1.2% firmer at R59,96/kg.

The first sale of the 2010/2011 marketing season will take place on 18 August 2010.

Cape Wools

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