South African Wool Market Strengthens

Port Elizabeth – The wool market was dearer at this week’s sale and the Cape Wools Merino indicator gained 2,1% to close at R113,45/kg (clean). This is 1,6% up compared to the opening sale of this season and 8,3% up compared to the corresponding sale of the previous season. On the Australian market, the indicator decreased by 3,1%. The Cape Wools All-Wool Indicator gained 1,7%.

Wool auctions resumed after the Easter recess and wool traders commented that the reduced wool supply would benefit growers offering better type wools. According to local traders the increase was supported by the weaker Rand and the continued firm demand from China for good quality long, well-grown Merino wool.

The Rand on the day traded 2,5% weaker at R12,08 against the US dollar, compared with last week’s average rate, and strengthened 1,6% against the Euro at R12,82. The offering comprised of 11 949 bales, of which 99% was sold. Major traders were G Modiano SA (3 887), Standard Wool SA (2 887), Lempriere SA (2 513) and Stucken & Co (1 088).

The weekly price monitor sample, limited to AWEX type MF5, 70-80mm, VM<=2% wool only,,75/kg, 18,5 microns strengthened by 2,2% to R121,91/kg, 19 microns gained 2,6% to close at R117,64/kg, 19,5 microns rose with 2,4% to close at R114,50/kg, 20 microns gained 2,7% to close at R113,21/kg, 20,5 microns increased with 2,3% to close at R112,02/kg, 21 microns gained 2,6% to close at R/kg, 21,5 microns were unchanged on R107,64/kg and 22 microns rose with 0,6% to close at R107,64/kg.

experienced an average price movement as follows: 18 microns were up by 3,9% to close at R125

The next sale is scheduled for 22 April where approximately 5 400 bales will be on offer.