The wool market closed slightly higher at this week's sale with the Cape Wool's Merino indicator gaining 0.5% on last week to end the day at R103,01/kg (clean).
This was despite a firmer rand, which at R7,74 against the US dollar, had gained 2.1% on last week's average rate. At R10,13, it was 1.4% stronger against the euro.
With wool production in all five major exporting countries at their lowest levels in decades, the market currently is largely driven by supply concerns.
This week's auction saw a small offering of 6 180 bales of which 96% was sold with grease-wool exporters taking up the largest volumes. Major buyers were Standard Wool SA (1 707 bales), Lempriere SA (1 523 bales) and Stucken & Co (1 264 bales).
The fine-wool category fleeces posted the largest decreases while the broader microns were up.
The average clean price for the different categories good top-making (MF5), long fleeces were as follows: 19 microns dropped 1,7% to R117,95/kg, 19,5 microns were 0,7% cheaper at R113,74/kg, 20 microns were up 2.1% to R110,95/kg, 20,5 microns were unchanged at R106,93/kg; 21 microns gained 1.8% to close at R106,18/kg, 21,5 microns were 0,4% dearer at R103,71/kg, and 22 microns rose by a marginal 0.3% to close at R104,99/kg.
Approximately 9 500 bales will come under the hammer at next week's auction.
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
