South African wool prices continue to climb

12 Sep '13

2 min read

This week’s sale saw a sharp increase in wool prices compared with the first sale of the new wool-selling season and the Cape Wools Merino indicator gained 13.8% to close at R116.03/kg (clean).

This increase is attributed to the active European demand pushing the market price of wool in an upward direction. Traders commented that the relatively unchanged rand value played no role in the steep climb in the wool price. The rand was 0.7% weaker against the US dollar compared with the average rate at the previous sale, while it dropped 1% against the euro.

A total of 9,870 bales were on offer of which 98% was sold. Fine wools were in keen demand with prices increasing significantly. The quality of the fine wools offered was excellent.

Major buyers were Modiano (2498), Standard Wool (2448), Stucken & Co (2052) and Lempriere (1800). The average clean prices for the different categories good top-making (MF5), long fleeces were as follows:

18 microns were up 9.6% to R124.00/kg, 18.5 microns rose by 11.9% to R123.59/ kg, 19 microns gained 12.6% to R121.55/kg, 19.5 microns rose by 13.8% to R119.46/kg, 20 microns gained 14.2% to close at R117.48/kg, 20.5 microns were up 13.5% at R116.11/kg, 21 microns rose by 12.8% to R114.98/kg and 22 microns were 12.8% dearer at R114.79/kg.

The next auction will be held on 11 September 2013 where approximately 8500 bales will be offered.

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