THE wool market traded lower yesterday and the Cape Wools Merino Indicator decreased by 3,3% and by 627 points to close at a value of R185,56 (Clean). The Australian EMI decreased by 4,0% this week. The Cape Wools All Wool Indicator declined by 3,5%.
The wool market’s 3,3% decline this week includes a 1,5% decline in USD terms with the remainder the result of Rand strength. Prices eased off slightly across all types despite the continued good market conditions and continued solid demand for quality long and fine wool. Buyers mentioned their concerns regarding the scarcity of wool with smaller auctions now expected due primarily to the impact of the drought.
Competition between buyers was good with Standard Wool buying the most bales on offer at these reduced levels.
This week saw the Rand at R11,98 to the US Dollar and R14,78 to the Euro. The Rand was 2,6% stronger against the US Dollar and 1,8% stronger against the Euro, compared with the average rate at the previous sale. The offering comprised of 9 362 bales of which 97,2% was sold. Major traders were Standard Wool SA (2 402), Lempriere SA (1 993), Modiano (1 837) and Tianyu SA (1 587).
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 decreased 3,7% to close at R224,92/kg; 18,5 microns moved 3,1% down to close at R219,00/kg; 19 microns lost 3,1% to close at R205,83/kg; 19,5 microns weakened by 3,9% to close at R194,42/kg; 20 microns was 3,5% weaker to close at R184,19/kg; 20,5 microns lost 3,8% to close at R175,93/kg; 21,0 microns lost 3,7% to close at R170,19/kg; 21,5 microns decreased by 2,1% to close at R165,49/kg; 22 microns decreased 1,2% to close at R165,79/kg and 22,5 microns declined by 1,5% to close at R160,78/kg.
The next sale is scheduled for 31 January 2018 where approximately ± 6 072 bales will be on sale.
