Wool prices reach new record high

WOOL prices reached a new record high at the Cape Wools SA sale in Port Elizabeth yesterday.Cape Wools SA public relations officer Lizelle Delport said good demand from the Chinese and European markets resulted in this new record high.

"The Cape Wools Merino indicator gained 2.3% to close the day at R118.30/kg (clean).

"This is a 16% increase on the opening sale and is up 5.2% on the corresponding sale last year," Delport said.

The rand at R10.80 traded 0.5% stronger against the dollar compared with last week's average rate. At R14.63 it had gained 1% on average against the euro. Wool receipts are up 6% compared with the corresponding period last season.

Brokers speculated this increase was mainly due to a change in the flow pattern of wool received as opposed to an increase in wool production, Delport said.

Traders supported the 20 micron and finer types very strongly with the average price for good top-making types gaining all of 4.8%.

Of the fairly large offering of 16106 bales of wool 98% was sold, with Standard Wool (3 906 bales) the main buyer.

The next sale is scheduled for next Wednesday where about 11000 bales will be on offer.