Wool market regains some lost ground (South Africa)

The wool market regained some lost ground at this week's sale and Cape Wools' Merino indicator gained 2.6% compared with last week to close at R84.10/kg (clean).

Competition was brisk for the good quality fleece wools, particularly fine wools, and a fresh seasonal high of R121.00/kg (greasy) was fetched for two bales of 15.8 microns belonging to Mr. Johan Klingenberg from Wakkerstroom. He also obtained the second highest price of R120.10/kg (greasy) for a bale of 16.2 Microns. The previous high was R118.80/kg (greasy).

The slightly weaker rand also supported the market. The currency had depreciated by 1.1% against the US dollar and was trading at R6.93. It was also 1.8% weaker against the euro at R9.69.

A high sales percentage was achieved and 97% of the 8 939 bales on offer was sold.

Major buyers were Standard Wool SA (3 295 bales), Stucken & Co (1 513 bales), Modiano SA (1 418 bales), Segard Masurel SA (1 337 bales), and Lempriere SA (1100 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were significantly higher than the market indicator, which was pulled down by the selection of average wools.

The averages for the MF5's were as follows: 19 microns gained 5.8% to R115.35/kg; 19.5 microns were 5.9% dearer at R102.23/kg; 20 microns were up 5.2% at R89.39/kg; 20.5 microns increased by 4.5% to R85.46/kg; 21 microns were 4.6% dearer at R84.92/kg; 21.5 microns gained 4.3% to R84.59/kg and 22 microns rose 5.6% to close at R87.14/kg.

Approximately 6 000 bales will be offered at next week's sale.