Wool prices down in tough market

Prices were mixed in a difficult market which saw the Cape Wools Merino indicator dropping 3.4% to R97,28/kg (clean).

Long, quality fleeces were in demand and achieved good prices, but medium to inferior qualities and cross-breds were difficult to sell and fetched considerably lower prices than last week.

A weaker rand, which at R8,44, was 3.8% down against the US dollar compared with last week’s average rate, once again helped to cushion the market. The rand was also 2.8% weaker against the euro at R11,27.

The offering comprised 8 909 bales of which 93% was sold. Major buyers were Standard Wool SA (3 625 bales), Stucken & Co (1 403 bales), Lempriere SA (1 311 bales) and Modiano SA (1 277 bales).

The average clean price for the different categories good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns were down 2.7% to R115,08/kg, 19,5 microns were 1.4% cheaper at R110,571/kg, 20 microns dropped by 3.5% to R104,89/kg, 20,5 microns were down 2.1% at R104,58/kg; 21 microns fell by 2,2% to close at R102,62/kg, 21,5 microns were 1.7% cheaper at R101,56/kg and 22 microns were down a marginal 0.3% to R100,73/kg.

Approximately 11 000 bales will be offered at next week’s sale.