Merino indicator at seasonal high (South Africa)

The market continued its upward trend at this week's sale and Cape Wools' Merino indicator rose 0.8% compared with last week to close at R86.26/kg (clean). This is the highest level this season and up 49% on the opening sale.

Prices were, however, very mixed with some qualities enjoying good demand and fetching higher prices compared with last week, while other types were cheaper.

The rand, at R6.79, had appreciated by 1% against the US dollar. At R9.57, the rand was up 1.6% against the euro.

A total of 10 646 bales were on offer of which 93% was sold.

Major buyers were Standard Wool SA (3 972 bales), Modiano SA (2 346 bales) and Stucken & Co (1 790 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were very erratic across the micron spectrum on offer: 19 microns dropped 2.9% to R113.87/kg; 19.5 microns were 2.6% dearer at R102.58/kg; 20 microns gained 5.7% to R91.66/kg; 20.5 microns were up 0.5% at R85.75/kg; 21 microns were up down by 0.5% to R84.76/kg, 21.5 microns were 2.8% cheaper at R85.83/kg, while 22 microns were 4.6% dearer to close at R89.08/kg.

No sale has been scheduled for next week. The next sale will take place on 13 April.