Wool market trades higher

Port Elizabeth – The wool market traded higher yesterday and the Cape Wools Merino Indicator increased by 2,3% and by 476 points to close at a value of R211,99 (Clean). The Australian EMI increased by 0,4% this week. The Cape Wools All Wool Indicator increased by 2,3%.

The wool market ended the season on an all-time record high today. Congratulations to CH Wagenaar who received the seasonal record high price of R230/kg (greasy) for a bale of 16,8 micron wool brokered by BKB. The market was again driven higher by the continued strong demand for quality long and fine wool with local supply limited despite the larger sized auction of which the majority of wool on offer was of medium length and fine. A weaker Rand contributed to the increased returns for producers. The final tally for wool delivered to broker stores is predicted to be well below the previous seasons intake.

Hats off to Modiano for buying the most bales on offer amidst fierce rivalry.

This week saw the Rand at R12,76 to the US Dollar and R15,01 to the Euro. The Rand was 1,5% weaker against the US Dollar and 2,9% weaker against the Euro, compared with the average rate at the previous sale. The offering comprised of 10 679 bales of which 99,3% was sold. Major traders were Modiano (3 453), Standard Wool SA (2 776), Tianyu SA (1 782) and Lempriere SA (1 653).

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 0,6% to close at R242,94/kg; 18,5 microns moved 1,3% up to close at R232,65/kg; 19 microns gained 1,9% to close at R219,25/kg; 19,5 microns strengthened by 2,7% to close at R216,88/kg; 20 microns was 2,4% stronger to close at R214,52/kg; 20,5 microns won 2,5% to close at R211,75/kg; 21,0 microns gained 2,7% to close at R213,25/kg; 21,5 microns improved by 2,8% to close at R208,92/kg; 22 microns increased by 2,1% to close at 206,65/kg and 22,5 microns increased by 2,7% to close at R200,85/kg.

The next sale is scheduled for 15 August 2018.

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