Wool prices rose for a third week in a row and Cape Wools' Merino indicator gained 2.1% to close at a fresh high of R78.13/kg (clean wool). This means that the indicator has gained 35% since the opening sale of the season in August last year.

The market currently is being driven by strong demand and supply concerns.

A weaker currency provided further support to the market. The rand, at R7.02, was down 2.4% against the US dollar compared with the previous week. It was also 4.2% weaker against the euro at R9.62.

This week's sale saw a much smaller offering than the previous two weeks with 8 690 bales on offer of which 94.5% was sold.

Major buyers were Standard Wool SA (3 937 bales), Modiano SA (2 061 bales), and Stucken (903 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 20 microns were 0.6% dearer at R81.49/kg; 21 microns strengthened by 1% to R76.04/kg; and 22 microns were 3.1% dearer at R75.47/kg.

Approximately 6 500 bales will be offered at next week's sale.

source:Cape Wools SA