Cape Wools Merino indicator at record highs

The first sale of the New Year opened on a positive note when wool prices rose sharply and the Cape Wools Merino indicator gained 7.1% to close the day at a fresh record of R105,15/kg (clean). This is up 49% on the corresponding sale last season and 1% higher than the previous seasonal high.

This is the highest level ever for the South African indicator.

There was keen competition from the various sectors of the trade for quality fleeces and the prices of most of these types rose to well above the R100/kg mark. In the 22-micron category gains of up to 10% were posted.

The price increases were in line with Australia, where the market posted gains just before the Christmas recess and continued to improve at this week’s sales.

The rand was 1.3% weaker against the US dollar compared with the previous sales’ average rate, trading at R8,06, but at R10,28 it was 3.8% stronger against the euro.

It was a fairly large sale with 12 330 bales on offer, of which 96% was sold. Major buyers were Standard Wool SA (3 194 bales), Lempriere SA (2 908 bales), Modiano SA (2 807 bales), Stucken & Co (1 562 bales) and Segard Masurel SA (1 016 bales).

The average clean price for the different categories good top-making (MF5), long fleeces were as follows: 19 microns rose 6.6% to R121,11/kg, 19,5 microns were 8.7% dearer at R117,58/kg, 20 microns gained 7.8% to R114,62/kg, 20,5 microns were up 7.4% to R112,08/kg; 21 microns increased by 6% to close at R109,51/kg, 21,5 microns were 7.3% dearer at R109,37/kg, while 22 microns gained 10.2% to close at R107,58/kg.

Approximately 14 000 bales will come under the hammer at next week’s sale.