The South African wool market again traded higher at this week’s auction. The Cape Wools Merino Indicator increased by 1,573 points (6.6%) to close at a value of R253.82 (Clean). The Cape Wools All Wool Indicator also gained 6.6%.
The market delivered excellent returns primarily due to the weakening rand and was supported by the continued excellent demand for good quality long and fine Merino wool.
Prices increased across the board with the fine to coarser ends benefitting. Buyers paid record level prices for a third consecutive auction.
This week saw the rand at R15.51 to the US dollar and R17.97 to the euro. The rand was 7.9% weaker against the US dollar and 7.9% weaker against the euro, compared with the average rate at the previous sale.
The offering comprised 11,225 bales of which 99.1% was sold. Major traders were Modiano (4,145 bales), Standard Wool SA (2,279), Tianyu SA (1,776) and Lempriere SA (1,303).
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 by 7.3% to close at R292.63/kg; 18.5 microns moved 6.1% up to close at R276.69/kg; 19 microns gained 8.4% to close at R272.46/kg; 19.5 microns strengthened by 7.2% to close at R262.41/kg; 20 microns was 5.1% stronger to close at R255.51/kg; 20.5 microns won 4.8% to close at R250.22/kg; 21 microns recovered 5% to close at R248.99/kg; 21.5 microns improved by 3.8% to close at R243.72/kg; 22 microns increased 5.1% to close at 247.10/kg; and 22.5 microns increased by 7.4% to close at R251.46/kg.
Source: Cape Wools
