The South African wool market ended lower at this week’s auction, held on 2-3 April, with the Cape Wools Merino Indicator decreasing by 1,058 points (4.9%) to close at a value of R205.84 c/kg (clean). The Cape Wools All Wool Indicator also fell by 4.9%.
There were 11,829 bales on offer of which 75.5% was sold.
This week saw the rand 2.4% stronger against the US dollar and 3.3% stronger against the euro, compared with the average rate at the previous sale. The market weakened by 2.6% in US dollar terms.
The market experienced downward pressure on the large relatively large offering, with medium and short wools decreasing by up to 11%. The continued suspension of wool exports to China, combined with a stronger SA currency, made the trading environment for buyers difficult, with a resultant low sales clearance of 75.5%, which is far below the average clearance normally achieved.
The major buyers were: Standard Wool SA (3,152 bales), G Modiano SA (1,980), Tianyu SA (1,597) and Lempriere SA (660).
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 2.7% to close at R234.73/kg; 18.5 microns moved 3.4% down to close at R225.51/kg; 19 microns lost 3.6% to close at R222.24/kg; 19.5 microns weakened by 3.9% to close at R218.18/kg; 20 microns was 3.6% weaker to close at R216.48/kg; 20.5 microns lost 3.7% to close at R211.96/kg; 21 microns lost 2.9% to close at R211.71/kg; 21.5 microns tumbled by 4.2% to close at R210.03/kg; 22 microns fell 4.7% to close at 207.36/kg and 22.5 microns declined by 4.8% to close at R244.45/kg.
Source: Cape Wools
