Wool market performs well. Prices slightly softer

Port Elizabeth – The wool market got off on a good start to the new wool selling season and Cape Wools’ Merino indicator closed the day at R111,63/kg (clean), which is 1,1% down on the closing sale of the previous season. This is an increase of 9,5% on the corresponding sale of the previous season. Similar market conditions prevailed at the Australian market where the indicator dropped with 3,6%. Traders reported hesitancy among Chinese buyers which resulted in prices easing at this week’s sale. On a positive note, good quality fine wools were keenly sought after due to firm demand from Europe, while high mid-break wools were discounted.

The rand at R10,66 traded 0,8% stronger against the dollar compared with last week’s average rate. At R14,17 it had gained 3,2% on average against the euro. The sale resulted in a 98% clearance of the 13 945 bales on offer. Most active traders were Standard Wool SA (4 794), Lempriere SA (2 707), G Modiano SA (2 570) and Stucken & Co (1 872. The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18 microns were up by 1,2% to close at R120,91/kg, 18,5 microns remained unchanged at R119,41/kg, 19 microns shed 0,2% to close at R117,91/kg, 19,5 microns dropped by 2,0% to close at R114,81/kg, 20 microns lost 1,6% to close at R112,08/kg, 20,5 microns decreased with 2,7% to close at R110,93/kg, 21 microns shed 3,0% to close at R110,26/kg, 21,5 microns decreased with 3,1% to close at R109,70/kg and 22 microns lost 3,8 % to close at R108,95/kg. The next sale is scheduled for 3 September. Report from Ria van Rooyen, Wool Appraiser