SA Wool Market Surges To Record Level

Port Elizabeth – The wool market traded 14,3% higher and the Cape Wools Merino Indicator increased by a surprising 2016 points to close at a value of R161,61 (Clean). In the Australian market, the indicator gained 3,1%. The Cape Wools All Wool Indicator strengthened by 13,8%.

The current gain is the largest recorded increase from consecutive auctions in the last five seasons and traders commented that the excellent competition between the buying houses for all the types of wool on offer combined with the plummeting Rand had driven the market to its current record high.  This will hopefully, make a valuable contribution to wool producers struggling under the effects of the drought.

The offering comprised of 12 778 bales, of which 98,2% was sold. Major traders were G Modiano SA (3 867) Standard Wool SA (3 294), Lempriere SA (3 175), and Stucken & Co (1 507).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18,0 microns gained 12,8% at R175,02/kg;  18,5 microns gained 16,0% at R176,84/kg; 19 microns increased 14,8% at R171,40/kg; 19,5 microns won 13,4% to close at R164,99/kg; 20 microns improved with 15,0% to close at R163,39/kg; 20,5 microns strengthend 14,9% to close at R161,53/kg; 21,0 microns rose 12,8% to close at R159,26/kg; 21,5 microns gained 13,0% to close at R159,26/kg and 22,0 microns gained  12,2% to close at R157,90/kg.

The next sale on 20 January 2016 where approximately ± 17 700 bales will be on offer.