The South African wool market traded higher at this week’s auction, with the Cape Wools Merino Indicator increasing by 566 points (2.7%) to close at a value of R217.80/kg (clean). The Cape Wools All Wool Indicator increased by 2.8%.
The market recouped some of its recent losses and traded stronger on the back of a weaker rand and better demand for quality long and fine wool. This was a sizable two-day auction of which the majority of wool on offer tested fine. Seasonal deliveries to broker stores are markedly down to the previous season to date.
Competition between buyers was good with Modiano buying the most bales on offer.
This week saw the rand at R14.72 to the US dollar and R16.68 to the euro. The rand was 3.1% weaker against the US dollar and 2.3% weaker against the euro, compared with the average rate at the previous sale.
The offering comprised 11,588 bales of which 94.5% was sold. Major traders were Modiano (4,177 bales), Standard Wool SA (2,774), Lempriere SA (1,445), and Tianyu SA (1,421).
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 2% to close at R245.85/kg; 18.5 microns moved 2.7% up to close at R246.04/kg; 19 microns gained 2.9% to close at R235.94/kg; 19.5 microns strengthened by 3% to close at R235.25/kg; 20 microns was 3.2% stronger to close at R230.15/kg; 20.5 microns won 4.4% to close at R227.75/kg; 21 microns recovered 4.2% to close at R227,40/kg; 21.5 microns improved by 4.3% to close at R218.47/kg; 22 microns increased 3.3% to close at 214.69/kg; and 22.5 microns increased by 0.6% to close at R218.11/kg.
Source: Cape Wools
