Steep increase in wool prices in Africa

This week’s sale saw a sharp increase in prices compared with last week and the Cape Wools Merino indicator gained 8.3% to close at R96.86/kg (clean).

This was due to a much weaker rand, an increase in the Australian market and possibly also as a result of buyers filling export quotas. After almost touching R9 to the US dollar on Monday, the rand on Tuesday and Wednesday this week made a slight comeback but at R8.71, was still 3,8% down against the US dollar compared with the average rate at the previous sale. The rand at R11.15, had also lost 2.9% of its value against the euro.

It was a small sale with only 6 491 bales on offer of which 99% was sold. Major buyers were Standard Wool SA (2 546 bales), Modiano SA (1 248 bales), Lempriere SA (1 087 bales) and Stucken & Co (931 bales).

Fine wools were in keen demand with prices increasing significantly. The quality of the fine wools offered was excellent. Medium wools, particularly 22 microns, were also highly sought after.

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns gained 7.8% at R107.02/kg, 18.5 microns rose 6.4% to R104,60/kg, 19 microns were 5.6% dearer to close at R101.57/kg, 19,5 microns gained 5.3% to R99.58/kg, 20 microns were 6.2% dearer at R96.64/kg, 20.5 microns gained 6.9% at R96.00/kg, 21 microns rose 7% to R95.61/kg, 21.5 microns were up 7.3% at R94.65/kg and 22 microns were up 8% to close at R93.58/kg.

Approximately 9 000 bales will be offered at next week’s sale.