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Challenging market conditions have led to the wool market taking a dip at this week's sale.
Cape Wools says its market indicator lost 5.2 percent to close on 105-rand-62 a kilogram for clean wool. This was also 5.4 percent lower on the opening sale and a 12.1 percent down on the corresponding sale of last year.
CEO, Louis de Beer said in a statement while local traders reported solid demand for good quality, it was the inferior and poorly grown wool that compromised the majority of the offering.
The offering comprised of 11 993 bales of which 94% was sold while "major traders were Lempriere SA (4 006), Standard Wool SA (2 792), G Modiano SA (1 890) and Stucken & Co (1 445).
Cape Wools said "the average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18 microns were up by 6,9% to close at R126,15/kg, 18,5 microns strengthened by 2,1% to R120,43/kg, 19 microns shed 1,6% to close at R114,90/kg, 19,5 microns dropped with 2,0% to close at R109,95/kg, 20 microns lost 1,4% to close at R108,01/kg, 20,5 microns decreased with 2,1% to close at R107,14/kg, 21 microns declined 2,3% to close at R105,70/kg, 21,5 microns weakened by 2,5% to R106,61/kg and 22 microns lost 0,8% to close at R106,79/kg."
The next sale is scheduled for 4 February where approximately 9 000 bales will be on offer.
