Cape Wools market loses steam

The wool market lost momentum at this week’s sale in the wake of continued global market uncertainty and recession fears. This resulted in Cape Wools Merino indicator declining by 2.6% to close at R100,75/kg (clean). This, however, still is above the key R100/kg level.

This decline was in line with the Australian market which also closed at lower levels.

A weaker rand, which at R8,13, was 3.5% down against the US dollar compared with last week’s average rate, no doubt prevented prices from falling further. The rand was also 1.4% weaker against the euro at R10,97.

The offering comprised 10 528 bales of which 95% was sold. Major buyers were Standard Wool SA (3 713 bales), Modiano SA (2 927 bales), Lempriere SA (1 373 bales) and Stucken & Co (1 316 bales).

The average clean price for the different categories good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns fell by 1.4% to R118,31/kg, 19,5 microns were 3.4% cheaper at R112,11/kg, 20 microns dropped by 3.2% to R108,75/kg, 20,5 microns were down 3.4% at R106,81/kg; 21 microns fell by 2.7% to close at R104,89/kg, 21,5 microns were 1.3% cheaper at R103,30/kg and 22 microns were unchanged at R100,05/kg.

Approximately 8 500 bales will be offered at next week’s sale.
 
Cape Wools