Wool prices soar to seasonal high, Cape Wools

Prices soared at the penultimate sale of the season and Cape Wools' Merino indicator rose 12.8% compared with the previous sale a fortnight ago to close at R95.57/kg (clean), which is its highest level in over a decade.

This is also 65% above the opening level.

The weaker rand, which at R6.98 had softened by 4% against the US dollar compared with the average rate at the previous sale, also supported the market. It was 1.5 % weaker against the Euro at R9.81.

There was keen demand from the various sectors of the trade for the good quality fleeces and traders say supply concerns and a building shortage of quality long wools, continue to be the main driving force.

A total of 8 649 bales was on offer of which 95% was sold.

Major buyers were Standard Wool SA (3 618 bales), Modiano SA (1 792 bales) and Stucken & Co (1 484 bales).

This was the first sale at which the average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) for the 19 tot 21 micron categories broke through the R100/kg level.

The average price for the different categories were as follows: 19 microns were 11.7% dearer at R123.29/kg; 19.5 microns rose 15.5% to R115.77/kg, 20 microns gained 9.9% to close at R101.50/kg; 20.5 microns were up 18.4% at R102.21/kg; 21 microns rose 15.3% to R100.17/kg, 21.5 microns were 16.8% dearer at R98.50/kg and 22 microns gained 16.9% to close at R96.28/kg.

The final sale of the season will take place on 8 June when approximately 12 500 bales will come under the hammer.