Farmer's Weekly (South Africa)

Wool market drops over 3% at 24th sale of season

- – Roelof Bezuidenho­ut

The 24th sale of the season saw 7 541 bales on offer, after 540 bales were withdrawn prior to the sale. Responsibl­e Wool Standard (RWS)-certified wool comprised 49,1% of the Merino wool on offer, according to Cape Wools SA. The bulk of the offering consisted of fine-micron, longer-length wools.

The market once again followed the downward trend in Australia, where prices fell 2,3%.

The market experience­d additional downward pressure from the stronger rand against the US dollar. The non-Merino and poorer-style wools further impacted the market negatively, according to Cape Wools SA. The non-RWS indicator declined 3,1% to close at R166,50/kg, with the certified indicator shedding 3,8% to close at R177,98/kg. A good overall sales clearance of 92,7% was achieved.

Major buyers were Standard Wool SA (1 660 bales), G Modiano SA (1 634), Tianyu SA (1 069) and BKB Pinnacle Fibres (1 050).

The OVK auction offered 2 151 bales, of which 93,72% were sold.

The top price of R210/kg was achieved by a six-bale AFFY lot of 15,6 microns from the clip of The Kerneels Greyling Trust, Wakkerstro­om district. The buyer was Standard Wool. Australian Wool Innovation reported that, as prices fell, grower seller resistance became apparent, and by the end of the week almost 20% of the offering had been passed in, and another 8% withdrawn before selling.

Demand for wool had been further curtailed for the time being by the apprehensi­on across all global markets caused by failures and issues facing some within the banking sector.

The subsequent stock and share losses, wildly erratic foreign exchange rates and a number of economies raising interest rates once more to curb inflation all combined to set a very risky environmen­t to trade.

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