Softening rand boosts wool prices

Further rand weakness and an increase in Australian prices supported the local wool market, with the Cape Wools indicator gaining 3,6% to close at R39,98/kg clean.
Issue Date: 23 March 2007

Further rand weakness and an increase in Australian prices supported the local wool market, with the Cape Wools indicator gaining 3,6% to close at R39,98/kg clean.

According to Cape Wools spokesperson Ona Viljoen, local prices followed the trend in Australia, where the indicator was up 2,4% compared with the previous week on the back of a slightly weaker currency and a smaller offering. “Most Merino long-fleece wools were 2% to 3% dearer, with 20 microns posting gains of over 5%,” she said. Johan Louw of Cape Mohair and Wools said inferior quality wool did not enjoy similar price increases, but competition was good enough to see almost the entire offering sold. “The flow of good-quality wool to the market both in South Africa and Australia is still inadequate to meet the demand,” he told Farmer’s Weekly.

BKB’s Ken Craig said short lamb’s wool was also keenly sought after. He agreed prices should remain at current levels. “However, as supply and demand shocks continue, volatility will become more prevalent,” he said. verage price movements for Australian Wool Exchange-type fleeces MF3, MF4 and MF5 of 70mm and 80mm were: 20 microns were 5,2% dearer at R59,19/kg; 21 microns gained 3,7% at R55,91/kg; 22 microns were up 2,4% at R53,95/ kg, 23 microns rose 2,4% at R52,29/kg and 24 microns gained 2,6% at R48,78. There were no quotes for 19 microns. Major buyers of the almost 11 000 bales on offer were Modiano (3 304 bales), Wool Exporters (1 442 bales), Segard Masurel (1 393 bales), Lempriere (1 292 bales), Chargeurs Wool (1 175 bales) and Stucken (1 175 bales). – Roelof Bezuidenhout