Strong demand, weak rand see wool season end on high note

GOOD demand and a significantly weaker rand contributed to higher prices at the final sale of the season this week and the Cape Wools Merino indicator gained 3.2% on the previous sale to close at R112.91/kg (clean).

This is an increase of 10.7% on the opening sale and 2.4% higher than the corresponding sale of the previous season.

The market performed similarly to the Australian market, where the indicator gained 1.2%.

There was great competition from all sectors of the trade despite the considerably large offering of 15596 bales, of which a sales percentage of 97% was obtained.

The most active traders were Standard Wool SA (4844), Lempriere SA (3645), G Modiano SA (2904) and Stucken and Co (2000).

The average clean prices for the selection within the different categories of good top-making (MF5), 70mm to 90mm and VM <=2% were as follows: 18 microns (µm) were down by 0.3% to close at R119.45/kg, 18.5µm strengthened by 3.3% to R119.45/kg, 19µm gained 4.2% to close at R118.09/kg, 19.5µm rose by 4.2% to close at R117.17/kg, 20µm gained 2.3% to close at R113.96/kg, 20.5µm increased by 3.5% to close at R113.96/kg, 21µm gained 3.4% to close at R113.64/kg, 21.5µm rose by 3.3% to close at R113.22/kg and 22µm strengthened by 3.9% to R113.22/kg.

The first sale of the new season is scheduled for August 20.