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Wool market under pressure due to negative sentiments
31 Oct '08
1 min read
The wool market remained under pressure in the wake of continued uncertainty in global markets and negative business sentiment and Cape Wools Merino indicator fell by 6,3% to close at R44,15/kg (clean).
With orders from overseas clients still declining, today' sale was supported by mainly local processors, who were buying to keep mills running.
While the rand had strengthened compared with last Wednesday's exchange rates, it remained volatile, creating further uncertainty. At mid-morning it was trading at around R10,22 to the US$, which was up 6,3% compared with last week.
At R13,03 it was 7,1% stronger against the euro, and had also gained 9,8% in value against the Australian dollar, which exerted further downward pressure on the local market.
Prices were softer across the board. Superfine wools dropped by almost 10%, while the fine to medium qualities weakened by between 3,7% and 5%.
A total of 7 451 bales was offered, of which 84% was sold. Major buyers were Chargeurs Wool (1623 bales); Stucken (1 443 bales); Segard Masurel SA (918 bales); and Modiano (903 bales).
Approximately 11 000 bales will be offered at next week's sale.
With orders from overseas clients still declining, today' sale was supported by mainly local processors, who were buying to keep mills running.
While the rand had strengthened compared with last Wednesday's exchange rates, it remained volatile, creating further uncertainty. At mid-morning it was trading at around R10,22 to the US$, which was up 6,3% compared with last week.
At R13,03 it was 7,1% stronger against the euro, and had also gained 9,8% in value against the Australian dollar, which exerted further downward pressure on the local market.
Prices were softer across the board. Superfine wools dropped by almost 10%, while the fine to medium qualities weakened by between 3,7% and 5%.
A total of 7 451 bales was offered, of which 84% was sold. Major buyers were Chargeurs Wool (1623 bales); Stucken (1 443 bales); Segard Masurel SA (918 bales); and Modiano (903 bales).
Approximately 11 000 bales will be offered at next week's sale.
Fibre2fashion News Desk - India
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