South African wool market in state of uncertainty

19 Apr '12

2 min read

With markets in general being in a state of uncertainty, the wool market was no exception and this week's sale saw prices moving sideways with the Cape Wools indicator closing at R99.11/kg (clean), which was down a negligible 0.3% compared with the previous sale a fortnight ago.

This nevertheless still is 18% higher than at the same sale last season.

The rand had depreciated slightly against the US dollar compared with the average rate at the previous season and was trading at R7.77. At R10,18, it was virtually unchanged against the euro. A high sales percentage of 98% was achieved. Major buyers were Standard Wool SA (2,961 bales), Modiano SA (2,660 bales), Lempriere SA (2,399 bales), and Stucken & Co (1,329 bales).

The finer end of the market once again posted the largest decreases, with18 microns falling by almost 6%, while medium wools posted increases.

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down 5,9% at R114.21/kg, 18,5 microns dropped 3,5% to R113.10/kg, 19 microns were up a slight 0.2% at R111.12/kg and 19.5 microns were 0.4% dearer at R108.59/kg.

20 microns increased by 0.3% to close at R105.23/kg, 20.5 microns were up 2.6% at R105.48/kg, 21 microns gained by 1.1% to close at R104.20/kg and 21.5 microns were 1.4% cheaper at R102.94/kg. There were no quotes for 22 microns.

Approximately 5,500 bales will come under the hammer at next week's sale.

Cape Wools