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There was a sharp increase in wool prices at this week's sale compared with the first sale of the new wool-selling season.
Cape Wools says its Merino indicator gained 13.8% to close at R116.03 per kilogram for clean wool.
It says this can be attributed to the active European demand which pushed the market price of wool in upwards.
"Traders commented that the relatively unchanged rand value played no role in the steep climb in the wool price. The rand was 0,7% weaker against the US dollar compared with the average rate at the previous sale, while it dropped 1% against the euro, according to a statement from Cape Wools.
"A total of 9 870 bales were on offer of which 98% was sold."
"Fine wools were in keen demand with prices increasing significantly. The quality of the fine wools offered was excellent."
The next auction will be held on 11 September 2013 where approximately 8 500 bales will be offered.
