New wool season opens on disappointing note in Africa (South Africa)

The first sale of the new wool-selling season opened on a disappointing note when wool prices dropped and the Cape Wools Merino indicator shed 7.2% compared with the closing sale of the previous season to close at R87.37/kg (clean).

 

This decline was in line with the Australian market which also saw prices declining considerably amid uncertainty and difficult demand conditions caused by the euro-zone crisis and forecasts of weaker global economic growth.

 

In addition, the rand was 2.5% stronger against the US dollar compared with the average rate at the previous sale, while it had gained 4% against the euro. 

 

It was a fairly large sale with 12 778 bales on offer. A low clearance rate of 88% was achieved as many producers chose to withdraw their wool. Major buyers were Standard Wool SA (3 842 bales), Lempriere SA (2 133 bales), Modiano SA (2 109 bales), Stucken & Co (1 520 bales) and Segard Masurel (1 196 bales).

 

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down 7.4% at R97.15/kg, 18.5 microns shed 19.6% to R97.15/kg, 19 microns dropped 10.3% to R95.15/kg, 19.5 microns weakened by 8,9% to R93.61/kg, 20 microns shed 8,2% to close at R92.16/kg, 20.5 microns were down 8.5% at R91.92/kg, 21 microns dropped 7.9% to R91.30/kg, 21.5 microns were 8.9% cheaper at R92.09/kg and 22 microns were down 8.6% to close at R92.17/kg.  

 

No sale has been scheduled for next week. Sales will resume on 29 August.