WOOL PRICES SLIGHTLY WEAKER

Port Elizabeth: The market was slightly weaker at this week’s sale as demand conditions remain tough and the Cape Wools Merino indicator shed 0,8% compared with last week to close at R88,09/kg (clean).

This is in line with the Australian market where the indicator was down 0,6%.

The market initially struggled to gain momentum and the average prices for some micron categories in early morning trade were down by up to 3%. It picked up pace later in the day. In contrast with last week, this week saw prices for the finer fleeces performing better than the broader types. Medium wools were also in keen demand.

There was little change in the value of the rand against the US dollar. At R8,18, the average rate of the rand was down by a marginal 0,3%, but it was 1% stronger against the euro, trading at R10,53.

A total of 5 697 bales were offered of which 99% was sold.

Major buyers were Standard Wool SA (1 235 bales), Stucken & Co (1 213 bales), Modiano SA (1 150 bales) and Lempriere SA (1 120 bales).

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down 1,5% at R98,26/kg, 18,5 microns gained 0,8% to R98,35/kg, 19 microns were down a marginal 0,1% at R96,43/kg, 19,5 microns shed 0,7% to R94,04/kg, 20 microns were 2,6% cheaper at R90,25/kg, 20,5 microns were down 2,2% at R89,09/kg, 21 microns shed 2,1% at R88,72/kg, 21,5 microns were 1,8% cheaper at R87,97/kg and 22 microns were down 3,1% to close at R86,83/kg.

Approximately 8 500 bales will be on offer next week.