SA Wool Market Surges To Record Level

Port Elizabeth – The wool market traded 14,3% higher and the Cape Wools Merino Indicator increased by a surprising 2016 points to close at a value of R161,61 (Clean). In the Australian market, the indicator gained 3,1%. The Cape Wools All Wool Indicator strengthened by 13,8%.

The current gain is the largest recorded increase from consecutive auctions in the last five seasons and traders commented that the excellent competition between the buying houses for all the types of wool on offer combined with the plummeting Rand had driven the market to its current record high.  This will hopefully, make a valuable contribution to wool producers struggling under the effects of the drought.

The offering comprised of 12 778 bales, of which 98,2% was sold. Major traders were G Modiano SA (3 867) Standard Wool SA (3 294), Lempriere SA (3 175), and Stucken & Co (1 507).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18,0 microns gained 12,8% at R175,02/kg;  18,5 microns gained 16,0% at R176,84/kg; 19 microns increased 14,8% at R171,40/kg; 19,5 microns won 13,4% to close at R164,99/kg; 20 microns improved with 15,0% to close at R163,39/kg; 20,5 microns strengthend 14,9% to close at R161,53/kg; 21,0 microns rose 12,8% to close at R159,26/kg; 21,5 microns gained 13,0% to close at R159,26/kg and 22,0 microns gained  12,2% to close at R157,90/kg.

The next sale on 20 January 2016 where approximately ± 17 700 bales will be on offer.

SA Wool season finished on a high note

Port Elizabeth – The wool market maintained its recent gains and the Cape Wools Merino indicator gained a marginal 0,9% to close at R141,20/kg (clean). This is 26,5% higher compared to the opening sale of this season. In the Australian market, the indicator increased by 2,0%. The Cape Wools All-Wool Indicator gained 0,9%.

Local traders commented that on the day finer wool ended slightly dearer and coarser wool slightly easier, but all in all a wonderful close to a successful season. The Cape Wools Merino indicator is at an all-time high and expectations are that the market will maintain its positive momentum at current levels going into the new season.

The Rand on the day traded 0,7% weaker at R12,33 against the US dollar, compared with last week’s average rate, and weakened 2,0% against the Euro at R13,89. The offering comprised of 10 369 bales, of which 98% was sold. Major traders were Lempriere SA (4 004), Standard Wool SA (3 737) and G Modiano SA (1 716).

The weekly price monitor sample, limited to AWEX type MF5, 70-80mm, VM<=2% wool only, experienced an average price movement as follows: 18 microns were up by 1,7% to close at R152,38/kg, 18,5 microns were unchanged at R147,46/kg, 19 microns gained 3,2% to close at R146,90/kg, 19,5 microns rose with 1,8% to close at R145,07/kg, 20 microns lost 0,4% to close at R140,57/kg, 20,5 microns increased with 1,9% to close at R140,47/kg, 21 microns gained 2,1% to close at R139,32/kg, 21,5 microns strengthened by 1,9% to R137,27/kg and 22 microns rose with 0,5% to close at R135,76/kg.

The first sale of the new season is scheduled for 12 August.

SA Wool prices at record high!

Port Elizabeth – Exceptional demand at the recent sale resulted in a new record high in wool prices and the Cape Wools Merino indicator gained 8,5% to close at R132,02/kg (clean). This is 18,3% higher compared to the opening sale of this season and 13,4% higher compared to the corresponding sale of the previous season. In the Australian market, the indicator increased by 7,6%. The Cape Wools All-Wool Indicator gained 10,2%.

Limited supply of long, good quality Merino wool and strong demand from the Chinese and Indian markets drove wool prices to the record high. Local traders noted that some clients

are resisting higher price levels.

The Rand on the day traded 0,8% weaker at R11,94 against the US dollar, compared with last week’s average rate, and weakened 3,3% against the Euro at R13,46. The offering comprised of 8 829 bales, of which 99% was sold. Major traders were Standard Wool SA (2 968), G Modiano SA (2 386) and Lempriere SA (2 270).

The weekly price monitor sample, limited to AWEX type MF5, 70-80mm, VM<=2% wool only, experienced an average price movement as follows: 18

microns were up by 7,5% to close at R140,66/kg, 18,5 microns strengthened by 6,2% to R138,96/kg, 19 microns gained 10,7% to close at R137,94/kg, 19,5 microns rose with 9,0% to close at R134,64/kg, 20 microns gained 8,0% to close at R132,46/kg, 20,5 microns increased with 9,2% to close at R130,37/kg, 21 microns gained 7,9% to close at R130,02/kg, 21,5 microns strengthened by 9,3% to R128,28/kg and 22 microns rose with 5,8% to close at R122,98/kg.

The next sale is scheduled for 27 May where approximately 8 000 bales will be on offer..

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.

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).

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

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.