Wool prices at a fresh high

Wool prices rose for a third week in a row, with the Cape Wools' Merino indicator gaining 2.1% to close at a fresh high of R78.13/kg (clean wool).

This means that the indicator has gained 35% since the opening sale of the season in August last year. The market currently is being driven by strong demand and supply concerns.

A weaker currency provided further support to the market. The rand, at R7.02/$, was down 2.4% against the US dollar compared with the previous week.

It was also 4.2% weaker against the euro at 9.62.

This week's sale saw a much smaller offering than the previous two weeks with 8,690 bales on offer of which 94.5% was sold.

Major buyers were Standard Wool SA (3,937 bales), Modiano SA (2,061 bales), and Stucken (903 bales).

Average prices for good top-making (MF5), sound, long fleeces - less than 1% seed content - were as follows: 20 microns were 0.6% dearer at 81.49 rand/kg; 21 microns strengthened by 1% to 76.04 rand/kg; and 22 microns were 3.1% dearer at 75.47 rand/kg.

Approximately 6,500 bales will be offered at next week's sale.