Wool Market Dearer

Port Elizabeth – The wool market was firm at this week’s sale and the Cape Wools’ Merino indicator gained 1,5% compared with the previous sale a fortnight ago to close at R113,32/kg (clean). Although this is an increase of 1,5% on the opening sale, prices declined 2,3% compared to the corresponding sale of the previous season.

The dearer wool prices reflected the positive global market sentiment, as was also experienced in the strengthened Australian market where the indicator gained 1,0%. According to traders the increase was prompted by good demand across all sectors of the trade for good quality South African Merino wool.

The rand, at R10,69 was a marginal 0,3% weaker against the US dollar compared with last week’s average rate, and at R14,06 it had gained 0,8% against the euro. It was a fairly large sale with 13 229 bales offered, of which 99% was sold. The most active traders were Standard Wool SA (4 072), Lempriere SA (3 292), Stucken & Co (2 642) and G Modiano SA (1 647).

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 3,7% to close at R125,43/kg, 18,5 microns strengthened by 1,3% to R120,95/kg, 19 microns increased 0,5% to close at R118,51/kg, 19,5 microns rose with 1,0% to close at R115,96/kg, 20 microns gained 2,0% to close at R114,33/kg, 20,5 microns increased with 1,6% to close at R112,76/kg, 21 microns gained 1,4% to close at R111,82/kg, 21,5 microns strengthened by 1,9% to R111,80/kg and 22 microns rose with 2,6% to close at R111,80/kg.

The next sale is scheduled for 10 September where approximately 9 800 bales will be on offer.