Wool market weakens

Wool prices were down at this week's sale and Cape Wools Merino indicator was down 4.6% on the previous sale a fortnight ago to close at R81.97/kg (clean). This is in contrast with price movements in Australia where the indicator has now increased by over 4% over the past two weeks to a fresh high.

Competition for quality long wools nevertheless was good and a price of R115/kg (greasy) was obtained for a bale of 15.2 microns offered by P.D. Jacobs from Trompsburg. This is slightly lower than the seasonal high of R118.80/kg paid on 9 February for a bale of 16.2 microns.

The sales percentage was lower than usual and only 86% of the 10 520 bales offered was sold.

The stronger rand also did not favour the market. The rand, at R6.86, had appreciated by 3.1% against the US dollar compared with the rate at the previous sale, while it was up 2% against the euro at R9.52.

Major buyers were Modiano SA (2 737 bales), Stucken & Co (2 223 bales), Lempriere SA (1 577 bales), and Standard Wool SA (1 464 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19.5 microns dropped by 3.7% to R108.98/kg; 19.5 microns were 2.8% cheaper at R96.53/kg; 20 microns were down 6.6% R84.99/kg; 20.5 microns fell by 6.5% to R81.78/kg; 21 microns were 5.1% cheaper at R81.17/kg; 21.5 microns were down 2% at R81.09/kg and 22 microns dropped 1.3% to R82.51/kg.

Approximately 9 500 bales will be offered at next week's sale.