SA Wool prices at record high!

Port Elizabeth – Exceptional demand at the recent sale resulted in a new record high in wool prices and the Cape Wools Merino indicator gained 8,5% to close at R132,02/kg (clean). This is 18,3% higher compared to the opening sale of this season and 13,4% higher compared to the corresponding sale of the previous season. In the Australian market, the indicator increased by 7,6%. The Cape Wools All-Wool Indicator gained 10,2%.

Limited supply of long, good quality Merino wool and strong demand from the Chinese and Indian markets drove wool prices to the record high. Local traders noted that some clients

are resisting higher price levels.

The Rand on the day traded 0,8% weaker at R11,94 against the US dollar, compared with last week’s average rate, and weakened 3,3% against the Euro at R13,46. The offering comprised of 8 829 bales, of which 99% was sold. Major traders were Standard Wool SA (2 968), G Modiano SA (2 386) and Lempriere SA (2 270).

The weekly price monitor sample, limited to AWEX type MF5, 70-80mm, VM<=2% wool only, experienced an average price movement as follows: 18

microns were up by 7,5% to close at R140,66/kg, 18,5 microns strengthened by 6,2% to R138,96/kg, 19 microns gained 10,7% to close at R137,94/kg, 19,5 microns rose with 9,0% to close at R134,64/kg, 20 microns gained 8,0% to close at R132,46/kg, 20,5 microns increased with 9,2% to close at R130,37/kg, 21 microns gained 7,9% to close at R130,02/kg, 21,5 microns strengthened by 9,3% to R128,28/kg and 22 microns rose with 5,8% to close at R122,98/kg.

The next sale is scheduled for 27 May where approximately 8 000 bales will be on offer..