Wool prices beat trends to rise in second consecutive week
20 Nov '08
2 min read
Prices were up for a second consecutive week on the back of strong demand from China and Cape Wools' Merino indicator gained 4,7% to close at R47,55/kg clean. This means that the indicator has over the past two weeks alone gained 11%.
China is presently very active in the market with importers scrambling to fill quotas before year-end, resulting in price increases around the world.
The local price increase occurred despite a slightly stronger rand. At R10,21, it was 0,5% stronger against the dollar compared with last Wednesday's exchange rate, but at R12,89 was unchanged against the euro.
A total of 8 997 bales was offered of which 98% was sold. Major buyers were Standard Wool SA (2,729 bales); Modiano (1,471 bales); Chargeurs Wool (1,355 bales); Lempriere AUS (1,243 bales); and Stucken (1,002 bales).
The prices of all long Merino types were up between 3% and almost 8%. Average price movements for AWEX types MF4 and MF5 of 70 mm and 80 mm were as follows: 19 microns gained 6,2% to R63,53/kg; 20 micron rose 7,7% to R53,81/kg; 21 microns were 3,2% dearer at R48,90/kg, and 22 microns were up 4,3% to close at R47,39/kg. There were no quotes for 23 microns to 25 microns.
Approximately 10,000 bales will be on offer next week.
Cape Wools'
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