The wool market traded slightly softer on Wednesday with Cape Wools Merino Indicator decreased by 1.4%.
The indicator shed 258 points to close at a value of R179.20.
Cape Wools said that the market offering consisted of an even spread across the long and medium length wool, with excellent demand for finer wool.
“The wool market offering consisted of an even spread across the long and medium length wool,” said Cape Wools.
“There was excellent demand for the finer wool although buyers mentioned some price resistance forming at these levels. The coarser wool declined markedly possibly due to volumes increasing as the larger seasonal deliveries come on stream,” it said in a statement on Wednesday.
“Competition between buyers was fierce with Tianyu SA buying the largest volume of bales.”
“This week saw the Rand at R13.46 to the US Dollar and R15.82 to the Euro. The Rand was 1.0% stronger against the US Dollar and 1.6% stronger against the Euro, compared with the average rate at the previous sale. The offering comprised of 9 197 bales of which 97.9% was sold.
The next sale is scheduled for 25 October 2017 where approximately 9 691 bales will be on sale.
