Wool market loses momentum due to adjustment, trades 2.6% lower

THE wool market traded 2.6% lower this week and the Cape Wools Merino Indicator decreased by 415 points to close at a value of R154.70 (clean).

On the Australian market, the EMI was down 1.9%. The Cape Wools All Wool Indicator lost 3.1%.

The market lost some momentum yesterday, particularly due to a small correction on the broader micron groups.

Concerns on the declining supply of good quality wool lingered, and again the finer side benefited.

The market is trading consistently above the 15 000 (clean) level and is expected to remain within this vicinity for the remainder of the season.

The quantity of wool delivered to market is declining as the season gradually starts to taper off.

The competition in Port Elizabeth between buyers, particularly on the finer wool, was great.

The rand strengthened by 1.9% against the US dollar compared with the average rate at the previous sale.

The offering comprised 9 809 bales of which 95.6% was sold.

Major traders were Lempriere SA (2 817), Modiano (2 638), Standard Wool SA (2 495) and Stucken & Co (860).

The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were: 18 microns lost 0.4% to close at R183.88/kg, 18.5 microns decreased 1.1% to close at R178.72/kg, 19 microns dropped 0.3% to close at R174.55/kg, 19.5 microns declined 2.3% to close at R162.44/kg, 20 microns decreased 3.4% to close at R155.39/kg.

Fleeces of 20.5 microns wool dropped 4.3% to close at R144.83/kg, 21 microns lost 4.2% to close at R142.62/kg, 21.5 microns decreased 4.1% to close at R141.77/kg, 22 microns lost 3.4% to close at R139.46/kg and 22.5 microns decreased 2.4% to close at R139.01/kg.

The next sale is due on Wednesday, where about 7 194 bales will be on sale.