Strong rand hampers African wool market

A stronger rand pushed wool prices down at the final sale before the Christmas recess and the Cape Wools’ Merino indicator decreased by 3.2% to close the first half of the season at R98,15/kg (clean).

This nevertheless is almost 56% higher than at the corresponding sale last season.

The rand had gained 4.4% against the US dollar compared with last week’s average rate, trading at R7,96, while at R10,68 it was up 3.6% against the euro.

It was a large sale with 14 000 bales on offer. The sales percentage was lower compared with last week and 90% of the offering was sold. Major buyers were Standard Wool SA (3 808 bales), Modiano SA (3 727 bales), Stucken & Co (2 275 bales) and Lempriere SA (2 088 bales).

The average clean price for the different categories good top-making (MF5), long fleeces were as follows: 19 microns dropped 4.3% to R113,63/kg, 19,5 microns were 6.9% cheaper at R108,15/kg, 20 microns weakened by 2.3% to R106,32/kg, 20,5 microns were down 3.4% to R104,35/kg; 21 microns dropped 4.2% to close at R103,36/kg, 21,5 microns were 3.4% cheaper at R101,92/kg, while 22 microns were down 1.9% to close at R97,60/kg.

Sales will resume on 11 January 2012 when approximately 10 000 bales will come under the hammer.