Strong demand for wool continues to drive prices (South Africa)

The wool market saw another hike in prices at this week's sale and Cape Wool's Merino indicator gained 4.1% to close the week at a fresh high of R83.58/kg (clean).

This is 44.6% higher than at the opening sale and represents an 18% increase since the first sale in January this year. The Australian market has also improved since last week.

Strong demand for wool and small offerings continue to drive prices. There was keen demand for fine fleeces (19 microns and finer) and prices for these types posted the largest increases.

A seasonal high of R118.80 (greasy) was paid for a bale ML280 of 16.2 microns offered by Mr. P.W.B. Uys from Wakkerstroom, Mpumalanga.

The rand, at R7.16, was 1.3% down against the US dollar compared with last week's rates, while it was virtually unchanged against the euro at R9.76.

This week's offering comprised 6 973 bales of which 97% was sold.

Major buyers were Standard Wool SA (2 317 bales), Modiano SA (1 877 bales), and Lempriere SA (1 151 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns increased by 9.8% to R116.47/kg; 19.5 microns were unchanged at R99.69/kg; 20 microns were 3.3% dearer at R87.68/kg;

20.5 microns rose 4.9% to R85.14/kg; 21 microns strengthened by 5.8% to R82.88/kg; 21.5 microns were up 4.1% at R81.36/kg and 22 microns were 0.4% dearer at R80.57/kg.

Approximately 10 500 bales will be sold at next week's sale.