Wool prices soar to fresh seasonal high

Wool prices surged at this week's sale on the back of strong demand and Cape Wools' Merino indicator gained 3.9% to close the day at a fresh seasonal high of R65.02/kg (clean).

This is in line with Australia where the market also reached a seasonal high and closed 4% above last season's highest level. Indications are that Europe's wool textile pipeline is still being replenished, with wool tops reportedly in short supply.

The rand, at R6.84, was up 1.7% against the US dollar, while the euro, at R9.59, was unchanged compared with last week's rates.

The offering comprised 9 960 bales of which 99% was sold. Major buyers were Standard Wool SA (3 499 bales), Modiano SA (2 801 bales), Lempriere (1 510 bales), and Stucken (1 272 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 20.5 microns gained 4.4% to R66.99/kg; 21 microns were up 4.5% to R65.68/kg; 21,5 microns were 3.2% dearer at R64.42/kg and 22 microns rose 3.5% to R63.67/kg.

Approximately 10 000 bales will be offered at next week's sale.