Demand due to shortage sees wool prices still on up

THE wool market continued its gains at this week’s sale and the Cape Wools Merino indicator gained another 6.8% to close at R116.09/kg (clean).

This represents an increase of 13.9% on the opening sale and is also 12.9% higher than at the corresponding sale in the previous season.

Traders attributed the increase to the current shortage of good-quality long wool and the corresponding strong international demand.

The weaker rand provided further support to the market.

It was a fairly large sale of decent quality and was characterised by a slightly higher percentage of shorter wool offered.

A total of 10 955 bales were on offer of which 97% was sold. Major buyers were Standard Wool SA (3 808), Lempriere SA (2 889) and GModiano SA (1 787).

Prices rose across all long fleece wool micron categories, with the biggest increase in the 19.5 micron to 22 micron categories, which strengthened by about 7% and more.

The average clean prices for the selection within the different categories of good top-making (MF5), 70-90mm and VM <=2% were as follows: 18 microns were up by 5.1% to close at R124.46/kg, 18.5 microns strengthened by 5.9% to R123.06/kg, 19 microns gained 5.9% to close at R122.44/kg, 19.5 microns rose by 7.1% to close at R121.29/kg, 20 microns gained 7.1% to close at R118.57/kg, 20.5 microns increased by 10.3% to close at R118.57/kg, 21 microns gained 8.7% to close at R118.78/kg, 21.5 microns increased by 7.6% to close at R116.56/kg and 22 microns strengthened by 8.3% to R116.56/kg.

About 10 500 bales will be on offer at the next sale, scheduled for May 6.