Wool prices higher as shortage rises

Prices for top-quality wool were higher at this week's sale with top fleeces fetching almost R130/kg. Image Wikipedia

This is 4.8% higher compared than the opening sale of this season and 0.3% higher compared with the corresponding sale from the previous season.

Local traders attribute the stronger market to a welcome increase in demand from China. The Australian market also improved with their indicator rising by 1.7% this week. Buyers report solid demand for the small percentage of good quality wools because of the mounting shortage at this week's sale.

The average clean prices for the selection within the different categories long fleeces were: 18 microns were up by 1.7% to close at R129.13/kg, 18.5 microns strengthened by 1.0% to R124.52/kg, 19 microns gained 0.7% to close at R120.78/kg, 19,5 microns rose with 1.7% to close at R118.80/kg, 20 microns gained 1.9% to close at R117.45/kg, 20.5 microns increased with 2.1% to close at R116.97/kg, 21 microns gained 1.4% to close at R116.14/kg, 21.5 microns strengthened by 0.9% to R115.45/kg and 22 microns rose with 0.9% to close at R115.45/kg.

About 8,200 bales will go on sale on 15 October.