Port Elizabeth – The wool market traded lower yesterday and the Cape Wools Merino Indicator decreased by 3% and by 579 points to close at a value of R186,56 (Clean). The Australian EMI lost 0,8% this week. The Cape Wools All Wool Indicator declined by 3,1%.
There was consistently good demand for good quality long and fine wool. The market got off to a slow start trading softer across all types but firmed later on. The volume of wool on offer has increased significantly as the seasonal deliveries at broker stores peak. Buyers remained cautiously optimistic but commented on experiencing resistance to these high levels from the market.
Competition between buyers was good with Modiano buying the largest volume of bales for a second week running.
This week saw the Rand at R13,65 to the US Dollar and R15,98 to the Euro. The Rand was 2,1% stronger against the US Dollar and 2,4% stronger against the Euro, compared with the average rate at the previous sale. The offering comprised of 14 242 bales of which 96,7% was sold. Major traders were Modiano (4 495), Standard Wool SA (3 344), Tianyu SA (2 551) and Lempriere SA (2 241).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18,0 microns increased 1,6% to close at R235,85/kg; 18,5 microns moved 3,5% down to close at R218,64/kg; 19 microns lost 2,8% to close at R206,52/kg; 19,5 microns weakened by 2,4% to close at R197,91/kg; 20 microns was 2,8% weaker to close at R183,55/kg; 20,5 microns decreased by 2,9% to close at R174,03/kg; 21,0 microns lost 2,7% to close at R170,60/kg; 21,5 microns decreased by 2,5% to close at R163,89/kg; 22 microns decreased by 1,6% to close at R161,40/kg and 22,5 microns declined by 2,0% to close at R157,91/kg.
The next sale is scheduled for 06 December 2017 where approximately ±15 037 bales will be on sale.
