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Cape Wools says South African wool prices at the start of the new wool-selling season opened on a disappointing note on Wednesday.
Company spokesperson Ona Viljoen says the Merino indicator shed 7.2% compared with the closing sale of the previous season to close at R87.37 p/kg for clean wool.
Viljoen said the decline was in line with the Australian market, which also saw prices declining considerably amid uncertainty and difficult demand-conditions.
These conditions include the euro-zone crisis and forecasts of weaker global economic growth.
Viljoen said the first sale was also a fairly large sale with 12,778 bales on offer.
A low clearance rate of 88% was achieved as many producers chose to withdraw their wool.
