Another sharp increase in wool prices in Africa

Cape Wools reported that wool prices rose sharply for a second week in a row with the market indicator gaining 4.5% at this week’s sale to close at R101.19/kg (clean). This is up almost 15% on the opening level and represents an increase of 7.5% on the same sale last season.

Improved demand, a hike in Australian prices and a slightly weaker rand all contributed to the price rise.

Although the rand, which had been under pressure over the past week, has gained some ground, trading at R8.65, it nevertheless was 0.7% weaker against the US dollar compared with last week’s average rate. At R11.34, the rand had lost 1.7% of its value against the euro.

The offering comprised 9 272 bales, which was larger than the offerings seen in the past few weeks, and a high sales percentage of 99% was achieved. Major buyers were Standard Wool SA (2 969 bales), Modiano SA (2 124 bales), Lempriere SA (1 758 bales), Stucken & Co (1 758 bales) and Lempriere SA (1 758 bales).

Prices rose across the board and all micron categories long fleeces gained between 3% and 4.5%.

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns gained 3,4% at R110.61/kg, 18.5 microns rose 4.5% to R109.27/kg, 19 microns were 4.6% dearer to close at R106.28/kg, 19.5 microns were up 4% to R103.58/kg, 20 microns were 4.9% dearer at R101.38/kg, 20.5 microns gained 4.6% at R100.44/kg, 21 microns rose 3,6% to R99,09/kg, 21.5 microns were up 4% at R98.44/kg and 22 microns rose by 3.9% to close at R97.25/kg.

Approximately 7 000 bales will be on offer at next week’s sale.