The wool market traded lower at this weeks’ auction and the Cape Wools Merino Indicator decreased by 4,4% and by 729 points to close at a value of R159,44 (Clean). The Australian EMI gained 2,6% this week. The Cape Wools All Wool Indicator lost 4,4%.
After a good run, where the wool market had consistently traded higher for four consecutive periods, the tide eventually turned and the golden fiber shed some value. Fine, medium and strong wool all traded easier. The demand for good quality long fleece wool remains strong and despite the larger auction only 7% was left unsold. Competition was keen with Standard Wool purchasing the most wool at auction followed by Modiano, a close second.
This week saw the Rand at R13,16 to the US Dollar. The Rand was 1,2% stronger against the US Dollar compared with the average rate at the previous sale. The Rand was 0,9% weaker against the Euro, trading at R14,35. The offering comprised of 11 631 bales of which 94,4% was sold. Major traders were Standard Wool SA (3 654), Modiano (2 747), Lempriere SA (2 579) and Stucken & Co (1 247).
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 dropped 3,4% to close at R219,40/kg; 18,5 microns decreased 3,9% to close at R213,32/kg; 19 microns lost 4,3% to close at R193,63/kg; 19,5 microns decreased 3,3% to close at R169,79/kg; 20 microns decreased with 5,1% to close at R155,04/kg; 20,5 microns moved down 4,3% to close at R147,55/kg; 21,0 microns weakened 3,2% to close at R142,88/kg; 21,5 microns decreased 4,3% to close at R139,66/kg; 22 microns lost 5,4% to close at R131,16/kg and 22,5 microns decreased 0,5% to close at R133,75/kg.
The next sale is scheduled for 10 May 2017 where approximately ±6 281 bales will be on sale.
