South African wool sales resumed this week following the postponement of last week’s auction after Chinese Customs had suspended all greasy imports from South Africa until further notice due to an outbreak of Foot and Mouth disease earlier in the year.
Compared with the previous sales held on 12-13 February the market was slightly lower at this week’s sale, held on 27 February, with the Cape Wools Merino Indicator decreasing by 57 points (0.3%) to close at a value of R217.60 (clean). The Cape Wools All Wool Indicator lost 0.2%. The market indicators in US dollar terms were also almost unchanged compared with the previous auction.
This week saw the rand at R13.85 to the US dollar and R15.78 to the euro. The rand was unchanged against the US dollar and 0.3% weaker against the euro compared with the average rate at the previous sale.
Due to the demand from Europe, the finer end performed very well this week. However, the broader end was under pressure due to the lack of competition from the Chinese market. The shorter wools were markedly down when compared to the previous auction due to the Chinese market situation.
The offering comprised 6,278 bales of which 88.5% was sold. Major traders were G Modiano SA (1,951 bales), Standard Wool SA (1,339), Lempriere SA (806) and Tianyu SA (707).
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 by 0.8% to close at R241.62/kg; 18.5 microns moved 0.6% up to close at R240.35/kg; 19 microns gained 0.8% to close at R237.41/kg; 19.5 microns weakened by 0.4% to close at R233.42/kg; 20 microns was 0.5% stronger to close at R229.38/kg; 20.5 microns lost 1.5% to close at R222.39/kg; 21 microns lost 0.1% to close at R220.96/kg; 21.5 microns tumbled by 1.3% to close at R212.19/kg; 22 microns rose 0.5% to close at 218.90/kg; and 22.5 microns climbed by 1.1% to close at R219.92/kg.
Source: Cape Wools
