Wool prices softer, Cape Wools

The market was softer at this week’s sale and Cape Wools’ Merino indicator dropped 2% compared with the previous sale a fortnight ago to close at R102,06/kg (clean).

This was in line with Australia where prices have been easing since last week.

Prices nevertheless were 18% higher than at the same sale last season. The indicator has remained above the R100/kg level since the first sale in January. It also is almost 18% above the season’s lowest level posted in the first week of October last year.

The rand was trading at R7,56 against the US dollar, which was 0.8% down on average rate two weeks ago. At R10,10, the rand had depreciated by 3% against the euro.

This week’s offering totaled 12 816 bales of which 99% was sold.

Major buyers were Standard Wool SA (3 036 bales), Stucken & Co (3 015 bales), Lempriere SA (2 609 bales), Modiano SA (2 247 bales) and Segard Masurel (1 443 bales).

Prices were down across the board but the finer end of the market saw the biggest declines, with 18 microns dropping 4%.

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down 4% at R119,54/kg, 18,5 microns dropped 5.3% to R115,57/kg, 19 microns were 2,4% softer at R112,86/kg, 19,5 microns were 1.6% cheaper at R111,54/kg, 20 microns softened by 2% to close at R108,29/kg, 20,5 microns were down 1.9% at R105,99/kg, 21 microns shed by 1.1% to close at R105,38/kg and 21,5 microns were 1.2% cheaper at R104,39/kg. There were no quotes for 22 microns.

Approximately 5 000 bales have been scheduled for next week. There are only six more sales remaining before the final sale of the season on 6 June.