South Africa's wool prices soar

The first South African wool sale of the new year opened on a positive note when wool prices rose sharply, Cape Wools said on Wednesday.

Company spokesperson Ona Viljoen said Cape Wools’ Merino indicator gained 7.1% to close the day at a fresh record of R105.15/kg (clean).

“This is up 49% on the corresponding sale last season and 1% higher than the previous seasonal high.”

Viljoen said the day’s prices were also the highest level ever for the South African indicator.

There was keen competition from the various sectors of the trade for quality fleeces. The prices of most of these types rose to well above the R100/kg mark.

In the 22-micron wool category gains of up to 10% were posted.

Viljoen said the price increases were in line with Australia, where the market posted gains just before the Christmas recess and continued to improve at this week’s sales.

She said a fairly large selection of 12 330 bales was on offer, of which 96% was sold.

Major buyers were Standard Wool South Africa (3194 bales), Lempriere South Africa (2908 bales), Modiano South Africa (2807 bales), Stucken & Co (1562 bales) and Segard Masurel South Africa (1016 bales).

Some 14 000 bales were scheduled for next week’s sale.—Sapa