Wool farmers smiling after good sales

TWO wool sales in Port Elizabeth yesterday fetched high prices for Eastern Cape farmers.

At the Cape Mohair and Wool sale in Burman Road, the highest price at yesterday's sale was paid to Adelaide father and son farmers Wayne and Micky Liddell for 15.3 micrometer (µm) wool at R105.60.

Spokeswoman Hela Kriek said choice wool of 16µm and finer was selling for 5% more than the previous sale, while 18µm to 21µm attained a fair increase of some 3%.

Wool of 22µm and stronger sold for 2% more than the previous sale last Wednesday. "The weaker rand- dollar exchange rate contributed towards the positive trend, as well as a strong demand for quality wool. Just about 100% of the offering was sold," Kriek said.

At the Cape Wools SA sale in Grahamstown Road the upward trend in wool prices continued and the Cape Wools Merino indicator gained a further 2.4% to close at R115.12/kg (clean).

This is a 12.9% increase on the opening sale of the season, Cape Wools SA spokeswoman Lizelle Delport said.

"According to traders, this increase was supported by a weaker rand and they said China and Europe had shown some resistance towards the higher prices obtained at this week's offering, despite the Chinese economy showing signs of recovery in the past month.

China was also celebrating a national holiday from October 1 to 7," Delport said.

The rand traded 2.4% weaker at R10.10 against the dollar, compared with last week's average rate, and weakened 2.7% against the euro at R13.67.

Prices were up across the board at the Cape Wools SA sale with the finer wools posting the biggest increases.

A total of 7149 bales were on offer, of which 99.2% was sold.

The most active traders were Modiano (1904), Lempriere (1631), Standard Wool (1 247) and Stucken & Co (1244).

The average clean prices for the different categories of good top- making (MF5) long fleeces were as follows: 18µm gained 3% to close at R121.36/kg, 18.5µm strengthened by 2.1% to R120.40/kg, 19µm rose 1.8% to R119.18/kg, 19.5µm strengthened by 2.3% to R118.02/kg, 20µm rose 1.7% to close at R115.38/kg, 20.5µm was up 2.1% at R114.77/kg, 21µm rose 2.2% to R114.63/kg, 21.5µm was 2.4% dearer at R114.41/kg and 22µm was up 1.9% to close at R113.53/kg.

Both Cape Mohair and Wool and Cape Wools SA will have sales again on Wednesday.