Wool prices soften at latest sale

OCTOBER 16, 2014

Prices softened at this week’s wool sale with the Cape Wools Merino Indicator shedding 3.5% to close at R112.88/kilogram (clean).

This was 1.1% higher than the opening sale of the season but was 2.9% down on the corresponding sale of the previous season.

Cape Wools said in a statement that strong demand for good quality wool had “underscored the marker”.

It added that traders were, however, concerned about “the increasing occurrence of poorer quality wools on offer due to drought which resulted in lower yielding tender wools”.

Cape Wools said the slightly stronger currency had also weighed on prices. Conditions, it said, had “reflected the global market”.

The sale resulted in a clearance of 95% of the 8 135 bales on offer. Approximately 10 200 will be on offer at the next sale scheduled for October 22. - metrominutes