Higher price for better style wool

Business Reporter

THE wool market was virtually unchanged amid a small offering yesterday.

The Cape Wools Merino indicator closed up a marginal 0.5% at R120.77/kg (clean), which is an 18.5% increase on the opening sale and is up 4.4% on the corresponding sale last year.

Cape Wools SA spokeswoman Lizelle Delport said a smaller offering of good quality wool at yesterday's auction translated into higher prices for better style wools.

"Traders are of the opinion this shortage of good wool is helping to sustain the current wool price.

"Traders supported the 20 micron and finer types very well with the average price for good top-making types of 18 microns gaining 5.5%," Delport said.

At 6.08pm‚ the rand – at R11.17 from R11.08 at its overnight close – traded about 0.5% weaker against the dollar compared with last week's average rate.

It was a small offering of 7733 bales of which 96% was sold.

Major buyers were Lempriere (2336), Standard Wool (1629), Stucken & Co (1259) and Modiano (1133).

The average clean prices for the different categories of good top-making (MF5) long fleeces were: 18 microns were up by 5.5% to R137.63/kg, 18.5 microns rose by 4.7% to R136.04/kg, 19 microns gained 2.7% to R130.86/kg, 19.5 microns were up by 2.1% to close at R125.60/kg, while 20 microns dropped by 1.8% to R119.66/kg, 21.5 microns lost 4.8% at R117.29/kg and 22 microns rose by 2.7% to close at R121.65/kg.

The next sale is scheduled for next Wednesday where about 7500 bales will be on offer.