The country's wool farmers were smiling this week as an under pressure currency put more Rands in their pockets.
Cape Wools says market traded 7.7% higher on Wednesday with the Cape Wools Merino Indicator increasing by 1107 points to close at a value of R154.70 per kilogram for clean wool.
"On the Australian market, the EMI increased 1.3%. The Cape Wools All Wool Indicator increased 6.7%," said Cape Wools.
"The significant increase of the market returned substantially more Rands to the pockets of wool producers today. The increase is directly attributed to the strength of the US Dollar. Prices increased similarly across the board for both long and medium wool with mid micron categories only slightly lagging the outlying micron groups," it said.
"The buyers did an excellent job to secure their clients orders in a highly competitive trading environment where considerable volumes traded hands. Modiano bought an impressive 5 649 bales followed by Standard Wools at 5 066 bales."
"This week saw the rand at R14.21 to the US dollar. The rand weakened by 5.0% against the US dollar compared with the average rate at the previous sale. The Rand lost 1.0% against the Euro, trading at R15.23. The offering comprised of 14 385 bales of which 98.8% was sold. Major traders were Modiano (5 649), Standard Wool SA (5 066), Lempriere SA (2 261) and Stucken & Co (768)."
The next sale is scheduled for 23 November 2016 where approximately 11 516 bales will be on sale.
