Demand drives wool to record

For the first time ever, the wool price has pushed through the key level of R100/kg, and, rather than currency fluctuations, farmers have strong demand to thank.

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For the first time ever, the wool price has pushed through the key level of R100/kg, and, rather than currency fluctuations, farmers have strong demand to thank.

“The demand for wool now has a greater impact on the market than the value of the currency,” said James de Jager, CMW’s manager for wool. “This illustrates a shortage of supply. With only six auctions remaining before the Christmas recess, buyers could be rushing to honour their orders for the end of year shipments.

“This increased demand for wool, especially from the fashion markets, is expected to filter down to the high-end retail stores over the next 12 to 18 months.” The Merino indicator recently ended at R100,15/kg.

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Ona Viljoen, Cape Wools spokesperson, said, “This not only is the highest [nominal] level ever, but is up 7,5% on the previous week and almost 9% higher than the opening level. It also represents a 60% increase on the same sale last season and is up almost 3% on last season’s seasonal high.”

The rand was fairly unchanged against last week’s average rates, up a marginal 0,3% against the US dollar at R7,89. It was 0,5% weaker against the euro at almost R11. A total of 7 780 bales were offered, of which 97% were sold. The prices of all long wool categories rose but medium wools posted the biggest increase, by up to 9%.

The average clean price for the different categories good top-making (MF5), sound, long fleeces (less than 1% seed content) were:
19 microns rose 8,7% to R119,40/kg, 19,5 microns up 5,8% at R112,63/kg, 20 microns rose by 7,6% to R110,30/kg, 20,5 microns were 7,2% dearer at R107,57/kg; 21 microns gained 9,2% to R106,0/kg, 21,5 microns were 8,1% dearer at R101,71/kg and 22 microns rose 9,3% to R98,83/kg. – Roelof Bezuidenhout