The South African wool market ended higher at this week’s auction, held on 12-13 February, with the Cape Wools Merino Indicator increasing by 360 points (1.7%) to close at a value of R218.76 (clean). The Cape Wools All Wool Indicator rose by 1.6%. In US dollar terms the average Market Indicator gained 0.3% compared with the previous auction.
The offering consisted of some good quality spinner type wools. The rise in the market came on the back of a weaker rand and good competition, especially for the long fine wools.
There is currently good demand from both China and Europe. Better qualities and good classed clips will continue to attract extra attention from buyers.
This week saw the rand at R13.78 to the US dollar and R15.61 to the euro. The rand was 1.4% weaker against the US dollar and 0.4% weaker against the euro compared with the average rate at the previous sale.
The offering comprised 10,790 bales of which 92.3% was sold. Major traders were G Modiano SA (3,566 bales), Standard Wool SA (3,243), Lempriere SA (1,107) and Tianyu SA (924).
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 2.2% to close at R243.34/kg; 18.5 microns moved 2% up to close at R242.27/kg; 19 microns lost 1.2% to close at R234.36/kg; 19.5 microns strengthened by 1.5% to close at R233.60/kg; 20 microns was 1.1% stronger to close at R227.26/kg; 20.5 microns won 0.6% to close at R225.08/kg; 21 microns recovered 1.5% to close at R223.46/kg; 21.5 microns improved by 1.3% to close at R217.44/kg; 22 microns rose 2.2% to close at 216.75/kg; and 22.5 microns climbed by 1.8% to close at R212.68/kg.
Source: Cape Wools
