Weaker rand gives wool sales a boost

WOOL prices rose sharply at this week’s sale in Port Elizabeth and the Cape Wools Merino Indicator gained 4.3% to close the day at R102.99/kg (clean).

This is up by almost 18% on the opening sale.

The increase can be attributed to an extent to a weaker rand. At R8.89, it was down 1.4% against the dollar compared with last week’s average. The currency, however, fluctuated during the day and at one stage reached a three-year low against the greenback. At R11.35, it had lost 1.8% of its value against the euro.

The market was also catching up with Australia, where prices rose sharply at the past two sales. Prices for long fleece wool were up across the board with the broader wools gaining the most.

The offering comprised 11 928 bales of which 99% was sold. Major buyers were Modiano SA (4 114 bales), Standard Wool SA (2 864 bales), Lempriere SA (2 099 bales) and Stucken & Co (1 513 bales).

Brokers are reporting an increase in the flow of wool from farms. Receipts to date are up 4.5% compared with the corresponding period last season.

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns gained 1.3% to R116.70/kg, 18.5 microns were up 3.3% at R117.55/kg, 19 microns were 1.2% dearer to close at R108.97/kg, 19.5 microns gained 3.8% at R108.17/kg, 20 microns were 4.8% dearer at R104.36/kg, 20.5 microns gained 5% to R103.59/kg, 21 microns were up 4.1% to R102.51/kg, 21.5 microns rose 2.2% to close at R99.19/kg, and 22 microns were up 4.6% to close at R9 100.33/kg.