South Africa Weekly Wool Market Report

PORT ELIZABETH: The final sale before the Christmas recess brought early Christmas cheer to producers when the market recouped some of its recent losses and Cape Wools Merino indicator gained 3,7% to close at R63,07/kg (clean).
               
This increase is attributed largely to improved demand at early processing level, which was also evident in the higher sales percentage when 94% of the 11 383 bales offered was sold, compared with only 88% sold last week.
               
The rand, at R6,90, was 1,7% up against the US dollar. It also appreciated by a marginal 0,4% against the euro to R9,13.
               
Major buyers were Standard Wool SA (4 370 bales), Modiano SA (3 383 bales), and Stucken (1 516 bales).
               
Medium wools (21 to 22 microns) posted the largest increases of between 4% and almost 7%.
               
Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns dropped 4,6% to R84,49/kg; 19,5 microns gained 1,9% to close at R72,89/kg; 20 microns were 4,6% dearer at R66,60/kg; 20,5 microns rose 4,1% to R64,36/kg; 21 microns strengthened by 4,4% to R63,86/kg; 21,5 microns were up 6,8% at R63,05/kg and 22 microns were 5,9% dearer at R61,45/kg.
               
The first sale after the Christmas recess has been scheduled for 12 January 2011.

* The graphs on page 3 of market report have not been updated due to the unavailability of Australian quotes. They will be updated as soon as these have been made available.