The South African wool market traded lower at this week’s auction, with the Cape Wools Merino Indicator decreasing by 533 points (2.3%) to close at a value of R223.95/kg (clean). The Cape Wools All Wool Indicator declined by 2.4%.
The market traded softer this week primarily due to mediocre market demand for long and fine Merino wool, driven by a strengthened rand. Prices decreased across the board with the fine and coarse ends of the market recording the greatest losses. 96% of a fair sized offering was sold.
This week saw the rand at R14.36 to the US dollar and R16.60 to the euro. The rand was 0.4% weaker against the US dollar and 1.3% stronger against the euro, compared with the average rate at the previous sale. The offering comprised 7,653 bales of which 97.6% was sold. Major traders were Modiano (2,804 bales), Standard Wool SA (1,576), Tianyu SA (1,424) and Stucken & Co (889).
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 3.6% to close at R264.86/kg; 18.5 microns moved 2.2% down to close at R256.60/kg; 19 microns lost 2.9% to close at R246.60/kg; 19.5 microns weakened by 2% to close at R244.13/kg; 20 microns was 2.9% weaker to close at R230.85/kg; 20.5 microns lost 3.4% to close at R225.91/kg; 21 microns lost 2.3% to close at R230.60/kg; 21.5 microns decreased by 3.2% to close at R221.98/kg; 22 microns decreased by 2% to close at 222.89/kg; and 22.5 microns declined by 4% to close at R225.24/kg.
Source: Cape Wools
