Prices were up for a second consecutive week on the back of strong demand from China and the Merino indicator gained 4,7% to close at R47,55/kg clean. This means the indicator has, over the past two weeks alone, gained 11%, according to Ona Viljoen of Cape Wools. “is presently very active in the market with importers scrambling to fill quotas before year-end, resulting in price increases around the world,” she said. “The local price increase occurred despite a slightly stronger rand. At R10,21, it was 0,5% stronger against the dollar compared to last Wednesday’s exchange rate, but at R12,89 it was unchanged against the euro.” Johan Louw, the manager for fibre at Cape Wool and Mohair (CWM), said 20 micron was up 7,7%, while 18 micron and finer, as well as 21 micron and coarser, rose between 3% and 6%.
“With only three auctions to go, we’re confident the market will rise gradually until the Christmas recess,” said Louw. H e said that while both the South African and Australian markets were being strongly supported by Chinese buyers and processors, India was competing keenly as volumes for good -quality long wools continued to shrink. The best price for a CMW client was for a two-bale Cape Merino lot of 16,6 micron, sold by JVS Daly, from Dordrecht, to Standard Wool for R59/kg. ccording to Wools’ statistics the prices of all long Merino types were up between 3% and almost 8%. Average price movements for AWEX types MF4 and MF5 of 70mm and 80mm were as follows: 19 micron gained 6,2% to R63,53/kg; 20 micron rose 7,7% to R53,81/kg; 21 micron was 3,2% dearer at R48,90/kg, and 22 micron was up 4,3% to close at R47,39/kg. – Roelof Bezuidenhout
