Wool market remains sluggish

15 Apr '10

2 min read

Prices drifted downward at this week's sale and the Cape Wools Merino indicator shed 2.8% compared with the last sale before the Easter recess to close at R60,00/kg (clean). A stronger rand also exerted downward pressure.

The Australian market has also been trending downward with the Eastern Market indicator falling to below the key level of A900c/kg for the first time since December 2009.

The rand, at R7,22 against the US dollar, had appreciated by 0.8% compared with the previous sale a fortnight ago, while it was 0.5% weaker against the euro, trading at R9,85.

A total of 11 151 bales was offered of which 93% was sold. Major buyers were Standard Wool SA (3 393 bales); Modiano SA (2 924 bales); Stucken (2 214 bales) and Lempriere SA (1 324 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns shed 2.6% to close at R68,73/kg; 19.5 microns gained 0.8% to R65,58/kg; 20 microns decreased by 0.5% to close at R62,47/kg; 20,5 microns were unchanged at R62,88/kg, and 21 microns were 1.2% cheaper at R61,42/kg. There were no quotes for 22 microns.

No sale has been scheduled for next week, but sales will resume on 28 April when approximately 10 000 bales will be offered.

Cape Wools

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