Wool prices rise sharply

Wool prices rose sharply at this week's sale on the back of strong demand and a small offering and Cape Wools' Merino indicator gained 6% to close at R61,48/kg (clean). This is the highest level for the season and 6.4% above the opening level.The Australian market also improved with the indicator rising above the key A900c/kg level.

The rand was 0.7% stronger against the US dollar compared with last week and traded at R6,79. It was virtually unchanged against the euro at R9,48. The offering comprised 6 543 bales of which 99% was sold. Major buyers were Modiano SA (2647 bales), Standard Wool SA (1511 bales) and Lempriere SA (1162 bales). Prices were up across the board with the stronger end of the market gaining the most.

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns increased by 3.6% to R73,46/kg; 19.5 microns gained 4.2% to close at R67,78/kg; 20 microns were 6% dearer at R64,84/kg; 20.5 microns rose 5.1% to R63,53/kg; 21 microns strengthened by 6.2% to R63,41/kg; 21.5 microns were up 4.4% at R61,72/kg and 22 microns were 5.3% dearer at R61,61/kg.

Approximately 11 000 bales will come under the hammer at next week's sale.

Cape Wools SA