Good news for wool farmers as price soars

Slightly weaker rand of benefit to prices

THE Port Elizabeth wool market surpassed last week’s record price and the Cape Wools Merino indicator gained 1.3% to close at R133.77/kg (clean). This is 19.8% higher compared to the opening sale of this season and up 22.2% compared to the corresponding sale of the previous season. On the Australian market, the indicator increased with 2.7%. The Cape Wools All-Wool Indicator gained 1.3%.

Local traders mentioned that the positive global sentiment combined with a shortage of good quality long Merino wool, is driving the upsurge in wool prices. The slightly weaker Rand also benefited prices.

The Rand on the day traded 1.1% weaker at R12.07 against the US dollar, compared with last week’s average rate, and strengthened 2.4% against the Euro at R13.14. The offering comprised of 8 039 bales of which 99% was sold. Major traders were Standard Wool SA (2 589), G Modiano SA (2 459) and Lempriere SA (1 474).

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 1.1% to close at R142.20/kg, 18.5 microns strengthened by 1.5% to R141.02/kg, 19 microns shed 1.1% to close at R136.37/kg, 19,5 microns rose with 0.2% to close at R134.93/kg, 20 microns lost 0.4% to close at R131.94/kg, 20.5 microns increased with 1.0% to close at R131,65/kg, 21 microns gained 0.5% to close at R130.62/kg, 21.5 microns strengthened by 0.5% to R128.98/kg and 22 microns dropped with 0.3% to close at R122.65/kg.

The next sale is scheduled for 3 June where approximately 6 400 bales will be on offer.