Wool market trades higher

    The wool market traded higher yesterday and the Cape Wools Merino Indicator increased by 0,6% and by 116 points to close at a value of R190,70 (Clean). The Australian EMI increased by 1,4% this week. The Cape Wools All Wool Indicator increased by 1,0%.

    The wool market continued its strong performance and closed firmer today driven by the excellent demand for quality long and fine wool. This was another smaller sized auction of which the majority of wool on offer was of medium length and tested fine. The weaker Rand increased the producer returns which assists producers in dealing with the reduced seasonal deliveries to broker stores which remain lower to the previous season to date.

    Competition between buyers was good with Standard Wool SA buying the most bales on offer.

    This week saw the Rand at R12,60 to the US Dollar and R14,94 to the Euro. The Rand was 1,5% weaker against the US Dollar and 1,4% stronger against the Euro, compared with the average rate at the previous sale. The offering comprised of 7 390 bales of which 99,1% was sold. Major traders were Standard Wool SA (2 146), Modiano (2 053), Tianyu SA (1 302) and Lempriere SA (1 155).

    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 by 1,2% to close at R224,77/kg; 18,5 microns moved 1,0% down to close at R213,67/kg; 19 microns gained 0,6% to close at R199,87/kg; 19,5 microns strengthened by 0,8% to close at R193,86/kg; 20 microns was 0,5% stronger to close at R191,83/kg; 20,5 microns won 0,1% to close at R189,37/kg; 21,0 microns is unchanged to close at R189,42/kg; 21,5 microns improved by 1,8% to close at R187,29/kg; 22 microns rose 2,7% to close at R186,05/kg and 22,5 microns gained by 2,6% to close at R180,26/kg.

    The next sale is scheduled for 23 May 2018.

     

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