Wool market softens, Cape Wools (South Africa)

The wool market was softer at this week's sale and Cape Wools' Merino indicator was down 2% compared with last week to close at R67,28/kg (clean). This is still 16% up on the opening sale.

The indicator was dragged down by the lower prices fetched for the stronger types of wool, which also comprised the largest part of the offering. Prices for most fine-wool types, however, continued to improve and a seasonal record price of R97,50/kg greasy (R129,17/kg clean) was fetched for three bales of 16,5 microns, produced by Ray Sephton of Fascally Farms in die Barkly East district. The wool had a clean yield of 75.5%.

The rand, at R7,00, was 2.8% weaker against the US dollar and was 0.6% down against the euro at R9,45. A total of 11 713 bales was offered of which 98% was sold. Major buyers were Standard Wool SA (4 213 bales), Modiano SA (3 653 bales), Lempriere (1 237 bales), and Stucken (1 230 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns softened by 0.8% to R86,11/kg; 19,5 microns gained 1.3% to close at R79,00/kg; 20 microns were 1.5% cheaper at R71,26/kg; 20,5 microns dropped 0.8% to R69,07/kg; 21 microns were down by 1.7% to R67,35/kg; 21,5 microns were 2.1% cheaper at R66,10/kg and 22 microns dropped 1.1% to R64,97/kg.

Approximately 9 000 bales will be offered at next week's sale.