Weak rand supports wool market

22 Sep '11

2 min read

The weakening rand supported the wool market at this week's sale and Cape Wools' Merino indicator gained 1.1% to close at R97,61/kg (greasy). This is 0.3% higher than the highest level last season.

With investors fleeing emerging market economies, the rand was struggling against the major currencies and fell to its lowest level against US dollar in many months. At R7,72, it was down 5.4% against the greenback compared with last week's average rates, while at R10,57, it was 5.5% weaker against the euro.

A total of 7 538 bales was offered of which 97.5% was sold. Major buyers were Modiano SA (2 069 bales), Standard Wool SA (2 008 bales, Lempriere SA (1 540 bales) and Stucken & Co (1 347 bales).

Most long fleece categories posted price increases with 19 microns posting the biggest increase.

The average clean price for the different categories good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns gained 1.8% to close at R119,24/kg, 19,5 microns were up 0.2% to R111,37/kg, 20 microns rose 0.9% to R106,41/kg, 20,5 microns were 0.9% dearer at R103,24/kg; 21 microns gained 1.1% to close at R101,93/kg, 21,5 microns were 1.2% dearer at R99,83/kg and 22 microns rose 1.3% to close at R97,12/kg.

Approximately 5 400 bales will be offered at next week's sale.

Capewools

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