The South African wool market ended the first half of the season unchanged at this week’s auction, held on 4-5 December, with the Cape Wools Merino Indicator increasing by 14 points (0.1%) to close at a value of R207.85 (clean). The Cape Wools All Wool Indicator gained 0.1%.
The market eased again on the back of a stronger rand and a slightly easier market in Australia. There was good support for well grown, long fleeces whereas the short wools continued to suffer due to changing fashion trends in China. The fluctuation of the rand continues to make trading difficult for the buying houses as the continuing drought makes things difficult for producers. It is apparent that the market is looking for well grown, long wools as well as proven sustainable clips. These clips are achieving a regular premium every week.
This week saw the rand at R13.78 to the US dollar and R15.63 to the euro. The rand was 1.2% stronger against the US dollar and 0.7% stronger against the euro compared with the average rate at the previous sale. The offering comprised 12,261 bales of which 97.1% was sold. Major traders were G Modiano SA (4,182 bales), Standard Wool SA (3,063), Lempriere SA (1,813) and Tianyu SA (1,711).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18 microns decreased 1.4% to close at R235.00/kg; 18.5 microns moved 1.1% down to close at R234.79/kg; 19 microns lost 0.7% to close at R222.85/kg; 19.5 microns weakened by 0.5% to close at R222.84/kg; 20 microns was 0.5% weaker to close at R220.43/kg; 20.5 microns lost 0.7% to close at R218.88/kg; 21 microns lost 0.8% to close at R217.41/kg; 21.5 microns tumbled by 0.2% to close at R207.86/kg; 22 microns fell 1.1% to close at 204.92/kg; and 22.5 microns declined by 0.9% to close at R204.61/kg.
Source: Cape Wools