SA wool prices rise

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Port Elizabeth -

South African wool prices continued to rise at this week's national sale, Cape Wools said on Thursday.

Company spokeswoman Ria Van Rooyen said Cape Wools' Merino indicator gained another 6.8 percent to close at R116.09/kg (clean).

“This represents an increase of 13.9 percent on the opening sale and is also 12.9 percent higher than at the corresponding sale the previous season.”

Van Rooyen said traders attributed the increase to the current shortage of good quality long wool and the corresponding strong international demand.

The weaker rand provided further support to the market on Wednesday.

Van Rooyen said this week's auction was a fairly large sale of decent quality wool and was characterised by a slightly higher percentage of shorter wool offered.

A total of 10 955 bales were on offer, of which 97 percent was sold.

Major buyers were Standard Wool SA (3 808), Lempriere SA (2 889) and G Modiano SA (1 787).

Prices rose across all long fleece wool micron categories, with the biggest increase in the 19.5 micron to 22 micron categories, which strengthened by around seven percent and more.

An estimated 10 500 bales would be on offer at the next sale rescheduled for May 6, 2014 due to the elections the next day. - Sapa

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