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SOUTH AFRICA WOOL MARKET SUSTAINS PRICES

2014-2-8

The wool market was virtually unchanged amid a small offering and the Cape Wools Merino indicator closed up a marginal 0,5% at R120,77/kg (clean).

This is a 18,5% increase on the opening sale and is up 4,4% on the corresponding sale last year.

A smaller offering of good quality wool at yesterday’s auction translated into higher prices for better style wools. Traders are of the opinion that this shortage of good wool is helping to sustain the current wool price.

Traders supported the 20 micron and finer types very well with the average price for good top making types of 18 microns gaining 5,5%.

The rand at R11,07 traded 0,5% weaker against the dollar compared with last week’s average rate. At R15,05 it had lost 0,1% on average against the euro.

It was a small offering of 7 733 bales of which 96% was sold.

Major buyers were Lempriere (2 336), Standard Wool (1 629), Stucken & Co (1 259) and Modiano (1 133).

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were up by 5,5% to R137,63/kg, 18,5 microns rose by 4,7% to R136,04/kg, 19 microns gained 2,7% to R130,86/kg, 19,5 microns were up by 2,1% to close at R125,60/kg, 20 microns dropped by 1,8% to R119,66/kg, 21,5 microns lost 4,8% at R117,29/kg and 22 microns rose by 2,7% to close at R121,65/kg.

The next sale is scheduled for 12 February where approximately 7 500 bales will be on offer.

Source:Cape Wools SA
 
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