The South African wool market traded lower at this week’s auction, with the Cape Wools Merino Indicator decreasing by 1,312 points (6%) to close at a value of R204,68/kg (clean). The Cape Wools All Wool Indicator fell by 5.9%.
The market declined due to a stronger rand and marginally softer demand for both long and medium length, fine Merino wool. All wool was affected equally, and returns reduced across the board. Seasonal receipts at broker stores are markedly down compared with previous season receivals.
This week saw the rand at R13.98 to the US dollar and R16.04 to the euro. The rand was 5% stronger against the US dollar and 3.8% stronger against the euro, compared with the average rate at the previous sale.
The offering comprised 9,584 bales of which 87.7% was sold. Major traders were Modiano (2,650 bales), Tianyu SA (2,193), Standard Wool SA (1,938) and Lempriere SA (784).
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 5.7% to close at R231.88/kg; 18.5 microns moved 6.1% down to close at R231.08/kg; 19 microns lost 6.2% to close at R221.23/kg; 19.5 microns weakened by 6.7% to close at R219.43/kg; 20 microns was 6.3% weaker to close at R215.67/kg; 20.5 microns lost 6% to close at R214.13/kg; 21 microns lost 6% to close at R213.73/kg; 21.5 microns decreased by 5.6% to close at R206.20/kg; 22 microns decreased by 5.1% to close at 203.73/kg; and 22.5 microns declined by 4.9% to close at R207.53/kg.
Source: Cape Wools
