The wool market traded 1.4% lower this week with the Cape Wools Merino Indicator decreasing by 225 points to close at a value of R160.81 per kilogram for clean wool.
Cape Wools said that over the past trading month there has been "consistently strong demand for medium length wool and excellent competition for longer and better quality wools."
"This trend will in all likelihood also continue through the final sale scheduled for 8 June. Buyers attributed this correction to the market being perceived as expensive," Cape Wools said in a statement.
"This week saw the rand at R15.67 to the US dollar. The rand strengthened by 0,7% against the US dollar compared with the average rate at the previous sale. The Rand strengthened 1.7% against the Euro, trading at R17.48. The offering comprised of 9 059 bales of which 94.8% was sold. Major traders were G Modiano SA (2 662), Standard Wool SA (2 190), Lempriere SA (2 174) and Stucken & Co (777)."
"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 lost 1.9% to close at R174.46/kg; 18.5 microns increased 0.1% to close at R173.34/kg; 19 microns decreased 1.7% to close at R168.43/kg; 19.5 microns gained 0.3% to close at R169.88/kg; 20 microns decreased with 1.5% to close at R165.86/kg; 20.5 microns decreased 1.9% to close at R164.27/kg; 21.0 microns lost 2.1% to close at R163.98/kg; 21.5 microns dropped 1.4% to close at R161.55/kg; 22.0 microns decreased 1.6% to close at R160.31/kg and 22.5 microns decreased 2.5% to close at R160.58/kg."
The next and last sale is scheduled for 08 June 2016 where approximately 9 627 bales will be on sale.
