Small offering, but wool market performs well

THE wool market traded slightly lower at this week’s auction and the Cape Wools Merino Indicator decreased by 0.8% and by 131 points to close at a value of R163 (clean).

On the Australian market, the EMI increased 1%, while the Cape Wools all wool indicator decreased 1%.

The wool market again performed very well yesterday and lost only 0.8% despite a strengthening rand.

It was a small offering with the majority of wool fine and of medium length. The firm demand for particularly fine wool continues.

Competition was fierce with Standard Wool purchasing the largest quantity of bales, despite rivalry from all buyers.

This week saw the rand at R12.65 to the US dollar. The rand was 3.2% stronger against the dollar compared with the average rate at the previous sale.

The rand was 1.7% stronger against the euro, trading at R13.65.

The offering comprised 5 276 bales, of which 97% were sold. Major traders were Standard Wool SA (1 672), Modiano (1 504), Lempriere SA (955) and Stucken & Co (552).

The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows:

18 microns gained 1.7% to close at R212.41/kg, 18.5 microns increased 1.3% to close at R204.37/kg, 19 microns gained 0.9% to close at R188.79/kg, 19.5 microns decreased 0.3% to close at R170.86/kg, 20 microns decreased with 2.1% to close at R155.76/kg, 20.5 microns moved down 1.7% to close at R147.23/kg, 21.0 microns weakened 0.1% to close at R147.31/kg, 21.5 microns decreased 4.2% to close at R137.54/kg, 22 microns lost 3.7% to close at R136.43/kg and 22.5 microns decreased 4.4% to close at R137.83/kg.

The next sale is scheduled for Wednesday.