Wool Market Increases

Port Elizabeth – The wool market was slightly dearer at this week’s sale and the Cape Wools Merino indicator gained 0,4% to close at R110,54/kg (clean). This is 1.0% down compared to the opening sale of this season and 3,7% down compared to the corresponding sale of the previous season On the Australian market, the indicator decreased by 0,1%. The Cape Wools All-Wool Indicator gained 2,8%.

Local traders commented that this week’s offering was sizable and a fairly decent one, with a very nice selection of long fleece wools on offer. Recent gains may have caused the market to slightly overheat and a correction is expected in the near future.

The Rand on the day traded 2,8% weaker at R11,76 against the US dollar, compared with last week’s average rate, and weakened 0,3% against the Euro at R13,12. 

The offering comprised of 13 743 bales, of which 98% was sold. Most active traders were Lempriere SA (5 020), G Modiano SA (2 910), Standard Wool SA (2 478) and Stucken & Co (1 948).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18,5 microns strengthened by 0,2% to R120,61/kg, 19 microns shed 2,3% to close at R113,15/kg, 19,5 microns declined with 1,6% to close at R107,83/kg, 20 microns gained 1,4% to close at R109,14/kg, 20,5 microns increased with 0,9% to close at R107,29/kg, 21 microns gained 0,9% to close at R107,39/kg, 21,5 microns strengthened by 1,0% to R104,99/kg and 22 microns rose with 2,9% to close at R107,02/kg.

The next sale is scheduled for 11 March where approximately 8 200 bales will come under the hammer. 
(Wool appraiser, Ria van Rooyen at 27 (0) 41 4844301).