The South African wool market traded lower at this week’s auction, with the Cape Wools Merino Indicator decreasing by 1,110 points (5%) to close at a value of R212.14/kg (clean). The Cape Wools All Wool Indicator fell by 5.2%.
The market continued its decline this week, reaching similar levels as at the end of the previous season due to lower demand for both long and medium length, fine Merino wool. Long wool prices reduced equally across the board whilst medium length fine wool and the shorter lengths were impacted severely.
The stronger rand again negatively influenced pricing. This week saw the rand at R14.28 to the US dollar and R16.30 to the euro. The rand was 0.4% weaker against the US dollar and 0.7% stronger against the euro, compared with the average rate at the previous sale.
The offering comprised 7,113 bales of which 88.7% was sold. Major traders were Modiano (2,263 bales), Standard Wool SA (1,559), Tianyu SA (1,008) and Lempriere SA (870).
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 6.4% to close at R241.00/kg; 18.5 microns moved 4.9% down to close at R239.55/kg; 19 microns lost 5.3% to close at R229.37/kg; 19.5 microns weakened by 5.3% to close at R228.50/kg; 20 microns was 4.6% weaker to close at R222.97/kg; 20.5 microns lost 5.2% to close at R218.22/kg; 21 microns lost 5% to close at R218.28/kg; 21.5 microns decreased by 5% to close at R209.49/kg; 22 microns decreased 4.5% to close at 207.73/kg and 22.5 microns was unchanged to close at R216.85/kg.
Source: Cape Wools
