Wool prices dip as result of strengthening Rand

27 Nov '08

2 min read

Prices were down at this week's sale, mainly as a result of a stronger rand and a drop in Australian prices. As a result, Cape Wools' Merino indicator shed 4.7% to close the day at R45,33/kg (clean).

The rand started firming sharply in afternoon trade on Tuesday and by this morning was trading at below the R10 against the US dollar. By mid-morning it was trading at R9,88 against the US dollar, which was 3,2% stronger compared to last Wednesday's exchange rate. It was 0,5% stronger against the euro.

Demand from China still seemed strong with some support from Europe. A total of 10 060 bales was on offer of which 90% was cleared to the trade. Major buyers Standard Wool SA (2 893 bales); Modiano (1 606 bales); Lempriere AUS (1 398 bales); Stucken (1 281 bales), and Segard Masurel (1 228 bales).

Average price movements for AWEX types MF4 and MF5 of 70 mm and 80 mm were as follows: 19 microns dropped 5,3% to R60,18/kg; 20 microns shed 6% to R50,59/kg; 21 microns were 3,4% cheaper at R47,25/kg: 22 microns were down 3,1% to close at R45,90/kg, and 23 microns shed 1,4% to R45,10/kg. There were no quotes for 24 microns to 25 microns.

Approximately 10,500 bales will be on offer next week. The final sale before the Christmas recess has been scheduled for 10 December.

Cape Wools'