Wool sales got off to a flying start at this week’s sale with the Cape Wools Merino Indicator increasing by a phenomenal 19.8% and by 3036 points to close at a value of R183.50 for clean wool.
Cape Wools said that this was 25% up on the corresponding sale of the previous season.
“The Australian EMI gained 8.8% this week. The Cape Wools All Wool Indicator gained by 19.8%.
“Traders attributed the sterling performance of this large auction to strong demand for good quality long South African Merino wool from buyers in China, India and the Czech Republic as a result of the continued growth in consumer demand for wool apparel. The weaker Rand also supported the strong results,” Cape Wools said in a statement.
“Competition between buyers was as fierce as could be expected in a sellers’ market where demand will continue to outstrip a growing supply.”
“This week saw the Rand at R13.25 to the US Dollar and R15.52 to the Euro. The Rand was 3.1% weaker against the US Dollar and 7.4% weaker against the Euro, compared with the average rate at the previous sale.
The offering comprised of 13 865 bales of which 97.6% was sold.
The next sale is scheduled for 23 August 2017 where approximately ±8 389 bales will be on sale.
