The South African wool market traded higher at this week’s auction, held on 20-21 November, with the Cape Wools Merino Indicator increasing by 398 points (1.9%) to close at a value of R210.12/kg (clean). The Cape Wools All Wool Indicator increased by 1.8%.
The market traded slightly higher despite the stronger rand and primarily due to the continued good demand for long and fine merino wool. Receivals at broker stores are still markedly down.
This week saw the rand at R14.01 to the US dollar and R15.96 to the euro. The rand was 2.6% stronger against the US dollar and 1.7% stronger against the euro compared with the average rate at the previous sale. The offering comprised 9,450 bales of which 97.5% was sold.
Major traders were Standard Wool SA (2,710 bales), Modiano (2,525), Tianyu SA (1,372) and Lempriere SA (1,310).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18 microns increased 0.7% to close at R236.75/kg; 18.5 microns moved 0.5% up to close at R236.08/kg; 19 microns gained 0.8% to close at R226.98/kg; 19.5 microns strengthened by 1.6% to close at R225.94/kg; 20 microns was 1.2% stronger to close at R220.93/kg; 20.5 microns won 1.9% to close at R220.88/kg; 21 microns recovered 1.2% to close at R218.66/kg; 21.5 microns improved by 0.4% to close at R210.73/kg; 22 microns decreased by 1.2% to close at 204.88/kg; and 22.5 microns declined by 2.1% to close at R203.77/kg.
Source: Cape Wools
