Wool market strengthens at latest sale

OCTOBER 9, 2014

The wool market strengthened at this week’s sale in Port Elizabeth “despite the stronger Rand” with the Cape Wools Merino Indicator gaining 1.5% to close at R117/kg (clean).

Cape Wools said in a statement that this was 4.8% higher than the opening sale of the current season and 0.3% above the corresponding sale of the previous season.

It said that local traders attributed the stronger market to “a welcome and genuine surge in demand from China,” adding that the Australian market had also improved with its indicator rising by 1.7% this week.

Cape Wools said that buyers had reported “solid demand for the small percent-age of good quality wools due to the general lack thereof at this week’s sale.

The sale resulted in a 98% clearance of the 8 280 bales on offer. The next sale is on October 15 when 8 200 bales will be on offer. - metrominutes

 

IMAGE sourced from www.stanza.co.uk