The South African wool market traded lower at this week’s auction, held on 17 October, with the Cape Wools Merino Indicator decreasing by 892 points (3.8%) to close at a value of R223.24/kg (clean). The Cape Wools All Wool Indicator declined by 3.9%.
The wool market declined this week due to lower market demand for both long and medium length, fine Merino wool. Long wool prices reduced fairly equally across the micron groups whilst medium length wool also declined, albeit with larger variations between its micron groups.
A stronger rand also negatively influenced pricing. This week saw the rand at R14.22 to the US dollar and R16.42 to the euro. The rand was 2.7% stronger against the US dollar and 2.2% stronger against the euro, compared with the average rate at the previous sale.
The offering comprised 8,038 bales of which 94.7% was sold. Major traders were Modiano (2,726 bales), Tianyu SA (1,698), Standard Wool SA (1,683) and Stucken & Co (900).
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 4.4% to close at R257.58/kg; 18.5 microns moved 4.4% down to close at R251.84/kg; 19 microns lost 4.4% to close at R242.18/kg; 19.5 microns weakened by 4.1% to close at R241.25/kg; 20 microns was 4.1% weaker to close at R233.73/kg; 20.5 microns lost 3.9% to close at R230.26/kg; 21 microns lost 3.9% to close at R229.70/kg; 21.5 microns decreased by 3.9% to close at R220.44/kg; 22 microns decreased by 4.9% to close at 217.46/kg; and 22.5 microns declined by 4.7% to close at R216.85/kg.
Source: Cape Wools
