South African wool prices soften as Euro crisis deepens
24 May '12
2 min read
Wool prices softened further at this week's sale, the penultimate sale of the season, as the crisis in the euro zone deepens, affecting business sentiment and the Cape Wools market indicator shed 2.5% to close at R95.69/kg (clean).
The drop came despite a softer rand against the US dollar. The rand weakened on mounting concerns about the outcome of a European Union leaders' summit on the euro-zone debt crisis. At R8,33, the rand was down 5,7% against the greenback compared with the average rate at the previous sale.
This week's offering comprised 8 271 bales of which 93% was cleared. Major buyers were Standard Wool SA (3 182 bales), Lempriere SA (1 668 bales) and Modiano SA (1 240 bales).
Quality fleece wools, however, continued to attract good prices, but average to inferior types were heavily discounted.
The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were 5.6% down at R106,63/kg, 18.5 microns dropped 5.6% to R106.24/kg, 19 microns were 4.3% cheaper at R106.18/kg, 19.5 microns were down 5.1% to R103.10/kg, 20 microns shed 3% to close at R102,11/kg, 20.5 microns were down 3.6% at R101.05/kg, 21 microns dropped 1.2% to close at R101.62/kg, 21.5 microns were 2.5% cheaper at R100.60/kg and 22 microns shed 2.7% to close at R100.57/kg.
No sale has been scheduled for next week. The final sale of the season will take place on 6 June when approximately 12 000 bales will be offered.