SA Wool price levels sustained

Port Elizabeth – The wool market maintained its recent gains and the Cape Wools Merino indicator closed the day up by a marginal 0,6% at R114,68/kg (clean). This is 2,7% higher compared to the opening sale of this season and 2,0% up compared to the corresponding sale of the previous season.

Traders commented that the weaker rand had propped up the local market, however in hard currency the market remained subdued due to poorer demand from China. They described this week’s offering as small and of poor quality and expect next week’s selection to be similar.

The rand of the day traded 1,7% weaker at R11,10 against the US dollar, compared with last week’s average rate, and weakened 1,1% against the euro at R14,30. The sale resulted in a 97% clearance of the 7 324 bales on offer. The most active traders were Lempriere SA (2 290), Standard Wool SA (2 029) and G Modiano SA (1 033).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down by 0,8% to close at R124,10/kg, 18,5 microns weakened by 1,0% to R122,29/kg, 19 microns shed 0,4% to close at R118,15/kg, 19,5 microns dropped with 0,5% to close at R115,82/kg, 20 microns gained 0,2% to close at R115,32/kg, 20,5 microns increased with 0,4% to close at R114,48/kg, 21 microns gained 0,9% to close at R113,81/kg, 21,5 microns strengthened by 1,5% to R113,81/kg and 22 microns rose with 2,5% to close at R113,64/kg.

Approximately 6 700 bales will be on offer at the next sale scheduled for 1 October.
Ria van Rooyen
Wool Appraiser