The South African wool market ended higher at this week’s auction, held on 5-6 March, with the Cape Wools Merino Indicator increasing by 418 points (1.9%) to close at a value of R221.78 (clean). The Cape Wools All Wool Indicator was also up by 1.9%.
The offering consisted of a very good selection of well grown, high spec fine wools which attracted good competition.
While the overall market indicator was up by 1.9% in local currency terms, the good, long Merino wools were up around 4% in rand terms and around 1% in US dollar terms. The shorter wools were markedly down due to the lack of competition from China. Sustainable wool attracted extra attention from the buying houses, fetching premium prices above the 4% mentioned above.
This week saw the rand at R14.20 to the US dollar and R16.05 to the euro. The rand was 2.6% weaker against the US dollar and 1.8% weaker against the euro compared with the average rate at the previous sale.
The offering comprised 10,476 bales of which 90.7% was sold. Major traders were G Modiano SA (3,592 bales), Standard Wool SA (2,132), Tianyu SA (1,634) and Lempriere SA (930).
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 1.5% to close at R245.13/kg; 18.5 microns moved 1.2% up to close at R243.28/kg; 19 microns gained 1.3% to close at R240.60/kg; 19.5 microns strengthened by 1.2% to close at R236.26/kg; 20 microns was 1.9% stronger to close at R233.69/kg; 20.5 microns won 2.2% to close at R227.38/kg; 21 microns recovered 0.9% to close at R223.00/kg; 21.5 microns improved by 1.8% to close at R215.99/kg; 22 microns rose 0.1% to close at 219.02/kg; and 22.5 microns declined by 2.4% to close at R214.71/kg.
Source: Cape Wools
