Weaker rand boosts wool market in Africa

A weaker rand su1pported the market at this week’s sale and the Cape Wool Merino indicator gained 1.5% to close at R89.44/kg (clean) - its highest level for the season. The market is performing reasonably well despite the current difficult business conditions and the indicator has remained at around the R88/kg (clean) level since the opening of the season.

The rand had lost 2.6% of its value against the US dollar compared with last week’s average rate. trading at R8.39. At R10.84. it was also 3% weaker against the euro.

A total of 8 726 bales was offered of which 98% was sold. Major buyers were Standard Wool SA (2 595 bales). Modiano SA (1 910 bales). Stucken & Co (1 840 bales) and Lempriere SA (1 526 bales).

Wool receipts into brokers’stores to date are down 3.2% compared with the corresponding period last season.

Most long fleeces were dearer with 18-micron fleece wools gaining the most. namely 1%.

The average clean prices for the different categories good top-making (MF5). long leeces were as follows: 18 microns were up 1% at R99.26/kg. 18.5 microns were down a marginal 0.1% at R98.27/kg. 19 microns shed 0.3% to close at R96.14/kg. 19.5 microns gained 0.6% to R94.60/kg. 20 microns were 0.8% dearer at R90.98/kg. 20.5 microns also gained 0.8% at R89.82/kg. 21 microns rose 0.7% to R89.34/kg. 21.5 microns were up 0.3% at R88.25/kg but 22 microns were down 0.3% to close at R86.61/kg.

Approximately 6 500 bales will come under the hammer next week's sale.