Wool prices soar to record levels

Wool prices soared to a record high at the first sale after the Christmas recess. A total of 14,189 bales were offered of which 98% was sold.

14 Jan 2011

The Cape Wools Merino indicator gained 11.8% compared with the previous sale in December to close at 70.54 rand/kg (clean) - up 22% on the opening sale in August 2010.

This increase is in line with the Australian market, where the indicator gained more than 9% compared with the final sale in December.

Fine wool wanted

The market is being driven by strong demand for fine and the better style wools, particularly from Europe, while supply concerns for the rest of the season are also playing a role, particularly in view of the floods in Australia.

Good styles and fine wools are expected to be in short supply for the rest of the season.

The rand, at 6.79, was up 1.7% against the dollar. It appreciated by 3.3% against the euro to 8.83.

Major buyers were Standard Wool SA (4,505 bales), Modiano SA (4,451 bales), Lempriere SA (2,125 bales) and Stucken (2,000 bales).

The prices of all long wool categories were up, with 19,5 micron posting the biggest increase of 14.5%.

Average prices for good top-making (MF5), sound, long fleeces - less than 1% seed content - were as follows: 19 microns gained 8.7% to 91.80 rand/kg; 19,5 microns rose 14.5% to close at 83.47 rand/kg; 20 microns were 13.7% dearer at 75.71 rand/kg; 20,5 microns rose 10.2% to 70.93 rand/kg; 21 microns strengthened by 9.2% to 69.74 rand/kg; 21,5 microns were up 8.5% at 68.40 rand/kg and 22 microns were 13.9% dearer at 70.01 rand/kg.

The next sale is on 19 January 2011 when about 14,000 bales will be offered.

Source: I-Net Bridge

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