The South African wool market traded higher at this week’s auction, held on 13-14 November, with the Cape Wools Merino Indicator increasing by 146 points (0.7%) to close at a value of R206.14/kg (clean). The Cape Wools All Wool Indicator increased by 0.5%.
 
The market increased primarily due to the slightly weaker rand. Market demand was unchanged from last week, with long and fine Merino wool still in high demand. Receivals at broker stores are markedly down, also due to the absence of wool from Lesotho.
 
This week saw the rand at R14.38 to the US dollar and R16.23 to the euro. The rand was 2.9% weaker against the US dollar and 1.2% weaker against the euro compared with the average rate at the previous sale. The offering comprised 12,524 bales of which 94.6% was sold. Major traders were Modiano (4,053 bales), Standard Wool SA (3,046), Tianyu SA (1,822) and Lempriere SA (1,745).
 
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 1.4% to close at R235.10/kg; 18.5 microns moved 1.6% up to close at R234.79/kg; 19 microns gained 1.8% to close at R225.22/kg; 19.5 microns strengthened by 1.4% to close at R222.44/kg; 20 microns was 1.3% stronger to close at R218.38/kg; 20.5 microns won 1.2% to close at R216.78/kg; 21 microns recovered 1.1% to close at R216.16/kg; 21.5 microns improved by 1.7% to close at R209.80/kg; 22 microns increased by 1.8% to close at 207.38/kg; and 22.5 microns increased by 0.3% to close at R208.05/kg.
 
Source: Cape Wools