The South African wool market opened the new season with a brilliant start at the first sale on 15 August. The Cape Wools Merino Indicator increased by an outstanding 2,630 points (12.4%) to close at a value of R238.29 (Clean). The Cape Wools All Wool Indicator also gained 12.4%.
The weaker rand was the primary driver of the large increase, having weakened significantly compared with the US dollar. However, the excellent performance still reflects the continued strong demand for South African Merino wool across all length and micron categories.
This week saw the rand at R14.49 to the US dollar and R16.40 to the euro. The rand was 13.5% weaker against the US dollar and 9.3% weaker against the euro, compared with the average rate at the previous sale. Of the 12,277 bales offered 98.7% was sold at auction.
McNaughton Farming from Graaf Reinet received a new record price of R233 for 17.2 micron wool marketed by BKB and purchased by Standard Wool, which also bought the most bales amid fierce competition.
The offering comprised 12,277 bales of which 99.1% was sold. Major traders were Standard Wool SA (3,983 bales), Modiano (3,965), Lempriere SA (1,421), and Stucken & Co (1,153).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18 microns increased 13.1% to close at R272.35/kg; 18.5 microns moved 14% up to close at R259.59/kg; 19 microns gained 12.2% to close at R250.74/kg; 19.5 microns strengthened by 14.1% to close at R247.54/kg; 20 microns was 14.9% stronger to close at R246.56/kg; 20.5 microns won 13.9% to close at R239.41/kg; 21 microns gained 12.8% to close at R241.68/kg; 21.5 microns improved by 11% to close at R237.52/kg; 22 microns increased 15.5% to close at 237.51/kg; and 22.5 microns increased by 7.8% to close at R228,40/kg.
Source: Cape Wools
