South African wool prices tumbles

29 Sep '11

2 min read

Wool prices tumbled at this week's sale as the global uncertainty took its toll and the Cape Wools Merino indicator dropped 6.1% to close at R91,68/kg (clean).

The market also took its lead from Australia where prices have been falling since mid September.

Wools from areas where Rift Valley Fever had occurred were heavily discounted, including bins and groups, which further contributed to the decline.

The rand was trading at R7,80 against the US dollar, which was down 1% from last week's average rate. At R10,63, it was 0.6% weaker against the euro.

It was a fairly small offering with only 5 346 bales offered of which 79% was sold – the lowest sales percentage this season. Major buyers were Standard Wool SA (1 414 bales), Stucken & Co (1 082 bales) and Lempriere SA (855 bales).

Prices declined across the board but wools of 19 microns and finer were the worst affected.

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 dropped 6.8% to close at R111,17/kg, 19,5 microns were down 5% to R105,82/kg, 20 microns declined by 5.6% to R100,43/kg, 20,5 microns were 5.2% cheaper at R97,92/kg; 21 microns weakened by 5.6% to close at R96,21/kg, 21,5 microns were 4.8% cheaper at R95,08/kg and 22 microns fell 4.7% to close at R92,54/kg.

Approximately 7 500 bales will be offered at next week's sale.

Cape Wools

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