Wool market shrugs off strong rand

07 Oct '10

2 min read

The wool market shrugged off the strong currency for a second consecutive week and Cape Wools' Merino indicator gained 1.2% to close at R58,00/kg (clean). The Australian market also strengthened despite the strong US exchange rate. The rand hit a new peak against the US dollar at R6,84, which was an appreciation of 1.1% compared with last week rates. It was 0,8 weaker against the euro at R9,47.

There was strong competition for the 8 005 bales on offer and 97% was sold. Buyers for Europe dominated. Major buyers were Modiano SA (3 079 bales), Standard Wool SA (1 783 bales) and Stucken (1 207 bales). Prices were mixed with the finer end of the market slightly cheaper, while the broader wools gained substantially.

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns were down a marginal 0.7% at R70,93/kg; 19,5 microns shed 1.2% to close at R65,02/kg; 20 microns were 1.2% dearer at R61,17/kg; 20,5 microns gained 2.7% at R60,64/kg; 21 microns strengthened by 2.8% to R59,72/kg; 21,5 microns were up 2.4% at R59,11/kg and 22 microns were 3.3% dearer at R58,50/kg.

Approximately 6 500 bales will be offered at next week's sale.

Cape Wools

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