Wool market continue its upward trend (South Africa)

Wool prices continued their upward trend at this week sale and Cape Wools' Merino indicator gained 28% on the previous sale a fortnight ago to close at R85,89/kg (clean).

This means that the indicator has risen by 36% since mid December when the market closed for the Christmas recess. In Australia, the indicator has also reached a fresh high. Strong demand and supply concerns continue to drive prices.

Wool receipts into brokers' stores to date stand at 35,2 million kg, which is almost 4% less than for the corresponding period last season.

The rand, at R7,08, had appreciated by 1.1% against the US dollar compared with the rates at the previous sale, while it was up 0.5% against the euro at R9,71.

A total of 10 787 bales was offered which 98% was sold.

Major buyers were Standard Wool SA (4 124 bales), Modiano SA (2 283 bales), Stucken & Co (1 989 bales), and Lempriere SA (1 309 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19,5 microns were unchanged at R99,35/kg; 20 microns were 3.7% dearer at R90,96/kg; 20,5 microns rose 2.7% to R87,43/kg; 21 microns strengthened by 3.2% to R85,56/kg; 21,5 microns were up 1.7% at R82,71/kg and 22 microns were 3.8% dearer at R83,61/kg.

Approximately 11 000 bales will be offered at next week's sale.

source:Capewools