Recent gains in wool lost as market drops

THE wool market traded lower in Port Elizabeth yesterday and the Cape Wools Merino Indicator dipped 2.6% and by 491 points, to close at R184.96 (clean).

The Australian EMI rose 0.3% this week. The Cape Wools All Wool Indicator decreased 3%.

The wool market lost its most recent gains and all micrometre groups across the board traded softer.

Demand for good quality long merino wool remains strong, but the majority of wool on offer was of medium length and fine, which contributed to large price variations across micrometre groups.

A stronger rand added to the dip. The auction was sizeable, but supply constraint concerns remain.

Competition between buyers was good, with Modiano buying the most bales at these levels. There were 9 339 bales, of which 98.2% was sold. The major traders were Modiano (3 090), Standard Wool SA (2 269), Tianyu SA (1 745), and Lempriere SA (1 009).