Wool market increases

The wool market was slightly dearer at this week's sale, Louis De Beer, CEO of Cape Wools SA, said on Wednesday.

The Cape Wools Merino indicator gained 0.4% to close at R110.54/kg (clean), De Beer said.

This is 1.0% down compared to the opening sale of this season and 3.7% down compared to the corresponding sale of the previous season. On the Australian market, the indicator decreased with 0.1%. The Cape Wools All-Wool indicator gained 2.8%.

Local traders said this week's offering was sizable and a fairly decent one, with a very nice selection of long fleece wools on offer. Recent gains may have caused the market to slightly overheat and a correction is expected in the near future.

The rand on the day traded 2.8% weaker at R11.76 against the dollar, compared with last week's average rate, and weakened 0.3% against the euro at R13.12.

The offering comprised of 13,743 bales of which 98% was sold. Most active traders were Lempriere SA (5,020), G Modiano SA (2,910), Standard Wool SA (2,478) and Stucken & Co (1,948).