Wool sales slump on rand as end of the season looms

THE wool market traded lower at this weeks’ auction in Port Elizabeth and the Cape Wools Merino Indicator decreased by 2.3% and by 380 points to close at a value of R158 57 (clean).

The Australian EMI lost 2.4% this week. The Cape Wools All Wool Indicator lost 2.3%.

Sentiment was heavily influenced by the volatility and strengthening of the rand.

The 2016-17 wool growing season is nearing its end and, at this penultimate sale, prices – particularly on the medium and shorter length wool – declined significantly.

Buyers commented that the demand for good quality long fleece wool remained good.

The fierce rivalry between Lempriere, Standard Wool and Modiano continued unabated.

The offering comprised of 10 585 bales, of which 93.6% was sold. Major traders were Lempriere SA (2 844), Modiano (2 776), Standard Wool SA (2 734) and Stucken & Co (914).

The average clean prices for good top-making (MF5), long fleeces were: 18 microns (μm) decreased 1.7% to R217.43/kg, 18.5μm 2% to R211.47/kg, 19μm lost 3.1% at R190.06/kg, 19.5μm 1.9% to R169.17/kg; 20μm 1.9% to R155.52/kg and 20.5μm was down 1.6% at R149.81/kg.

The next sale is due on Wednesday, when about 6 158 bales will be on sale.