Bloemfomtein - South African wool prices increased sharply on Wednesday compared with the first sale of the new wool-selling season, said Cape Wools.
Company spokeswoman Lizelle Delport said Cape Wools’ Merino indicator gained 13.8 percent to close at R116.03/kg (clean).
“This increase is attributed to the active European demand pushing the market price of wool in an upward direction,” she said.
Traders had said the relatively unchanged rand value on Wednesday had played no role in the steep climb in the wool price.
A total of 9870 bales were on offer, of which 98 percent was sold.
Delport said fine wool was in keen demand and prices had significantly increased.
“The quality of the fine wool offered was excellent this week.”
Major buyers were Modiano (2498), Standard Wool (2448), Stucken & Co (2052) and Lempriere (1800).
The next auction would be held on September 11, when an estimated 8500 bales would be offered. - Sapa