The South African wool market ended lower at this week’s auction, held on 13 March, with the Cape Wools Merino Indicator decreasing by 736 points (3.3%) to close at a value of R214.42 (clean). The Cape Wools All Wool Indicator also lost 3.3%.
Although the offering consisted of good quality long fine wools, the market came under pressure due to the continued suspension by Chinese Customs of all greasy wool imports from South Africa due to an outbreak of Foot and Mouth disease earlier in the year.
The shorter wools were under more pressure, as buyers are being forced to make their selection criteria stricter within the current trading environment. Sustainable wool clips once again achieved premium prices.
The market declined by 4.2% in US dollar terms from last week, highlighting the difficult trading environment.
This week saw the rand at R14.34 to the US dollar and R16.19 to the euro. The rand was 0.9% weaker against the US dollar and 0.8% weaker against the euro compared with the average rate at the previous sale.
The offering comprised 6,582 bales of which 90.2% was sold. Major traders were Standard Wool SA (1,838 bales), G Modiano SA (1,666), Lempriere SA (1,059), and Tianyu SA (502).
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% to close at R237.87/kg; 18.5 microns moved 3.1% down to close at R235.65/kg; 19
microns lost 3.2% to close at R232.99/kg; 19.5 microns weakened by 3.4% to close at R228.66/kg; 20 microns was 3.6% weaker to close at R225.32/kg; 20.5 microns lost 2.8% to close at R221.05/kg; 21 microns lost 3.1% to close at R216.02/kg; 21.5 microns tumbled by 0.7% to close at R214.58/kg; 22 microns fell 2.4% to close at 213.76/kg; and 22.5 microns declined by 1.4% to close at R211.73/kg.
Source: Cape Wools
