The South African wool market traded lower at this week’s auction with the Cape Wools Merino Indicator decreasing by 1,092 points (4.3%) to close at a value of R242.90 (clean). The Cape Wools All Wool Indicator also declined by 4.3%.
At the sales held on 18 and 19 September the market lost a bit of steam primarily due to the strengthening rand, but was supported by the continued excellent demand for good quality long and fine Merino wool. Prices decreased across the board with the fine to coarser ends declining most. Over 96% of the wool on offer was sold.
This week saw the rand at R14.70 to the US dollar and R17.17 to the euro. The rand was 5.2% stronger against the US dollar and 4.4% stronger against the euro, compared with the average rate at the previous sale.
Van Lill Wool Brokers achieved their highest price to date for ML270 wool of 16.3 microns at R250.10/kg.
There was good competition on the market with Modiano and Standard Wool buying more than 2,400 bales each.
The offering comprised 11,228 bales of which 98.9% was sold. Major traders were Standard Wool SA (2,554 bales), Modiano (2,508), Tianyu SA (2,130) and Lempriere SA (1,869).
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 3.3% to close at R283.10/kg; 18,5 microns moved 2.4% down to close at R270.05/kg; 19 microns lost 4.6% to close at R259.90/kg; 19.5 microns weakened by 3.1% to close at R254.35/kg; 20 microns was 4.5% weaker to close at R244.07/kg; 20.5 microns lost 4.6% to close at R238.79/kg; 21 microns lost 5.7% to close at R234.72/kg; 21.5 microns decreased by 2.9% to close at R236.65/kg; 22 microns decreased 5.6% to close at 233.19/kg; and 22.5 microns declined by 6.8% to close at R234.32/kg.
Source: Cape Wools