Wool price higher, but good value

THE wool market traded 2.7% higher this week and the Cape Wools Merino Indicator increased by 420 points to close at a value of R158.90 (clean).

On the Australian market, the EMI increased 0.4%.

The Cape Wools All Wool Indicator gained 3.6%.

The wool market was steady this week, the finer end slightly dearer.

The medium wool traded briskly due to good competition and buyers commented that despite the market being regarded as expensive it still offered pockets of good value.

Smaller lots of top-quality long wool delivered excellent returns to sellers.

This week saw the rand at R13.46/$1, having weakened by 1.3% against the dollar compared with the average rate at the previous sale.

The rand lost 1.8% against the euro, trading at R14.52/ß1.

The offering comprised 7 711 bales of which 97.5% was sold.

Major traders were Modiano (2 864), Lempriere SA (1 837), Standard Wool SA (1 551) and Stucken & Co (806).

The average clean prices for the selection in the different categories for good top-making (MF5), long fleeces were: 18μm (micrometres) gained 1.6% to close at R186.75/kg; 18.5μm increased 0.4% to close at R179.47/kg; 19μm gained 0.1% to close at R174.74/kg; 19.5μm increased 1.7% to close at R165.18/kg; 20μm increased with 0.5% to close at R156.12/kg; 20.5μm moved up 2.6% to close at R148.62/kg; 21μm strengthened 2.7% to close at R146.42/kg; 21.5μm increased 0.3% to close at R142.25/kg; 22μm gained 0.5% to close at R140.10/kg and 22.5μm increased 1.2% to close at R140.69/kg.

At the next sale, scheduled for February 8, about 6 682 bales will be on sale.