South African wool prices touch all-time high

The wool market rose sharply at the final sale before the Christmas recess with the Cape Wools Merino indicator reaching an all-time high when it gained 7% on the previous week to close at R109.91/kg (clean).

This not only is higher than last season’s highest level, but it also represents a 25.8% increase on the opening sale and is up almost 12% on the corresponding sale last year. In Australia, the market also posted considerable increases.

There was excellent competition in the sale’s room from all sectors of the trade despite the large offering of 15,723 bales, the largest in the past two seasons. A high sales percentage of 99% was obtained.

The rand at R8.82, it was 0.8% stronger against the dollar compared with last week’s average rate. At R11.47, it had lost 0.6% on average of its value against the euro.

Prices rose across the board with 19-micron long fleece wools rising by almost 8%.

Major buyers were Modiano SA 4,726 bales), Standard Wool SA (4,288 bales), Lempriere SA (3,039 bales) and Stucken & Co (2,136 bales).

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns gained 3.6% to R122.76/kg, 18.5 microns were up 5.9% at R12.,31/kg, 19 microns were 7.8% dearer to close at R111.09/kg, 19.5 microns rose 6.9% to R114,85/kg, 20 microns were up 6.9% at R111.36/kg, 20.5 microns strengthened by 7.1% to R109.22/kg, 21 microns were gained 6.9% at R109.63/kg, 21.5 microns rose 6% to close at R107.70/kg, and 22 microns were up 6.1% to close at R107.56/kg. 

Sales will resume on January 9, next year.