Wool market closes on firmer note

18 Sep '08

2 min read

Amidst the turmoil in international financial and commodity markets, the wool market was firmer at this week's sale and Cape Wools' Merino indicator gained 1,3% on last week to close the day at R53,46/kg (clean).

A weaker currency, a small offering and a 2,6% rise in the Australian market indicator since last Wednesday contributed to this improvement in prices, halting the downward slide seen since the opening sale of the season.

Compared with exchange rates at last week's auction, the rand was weaker by 1,1 % against the US dollar, trading at R8,08, and had also depreciated by 1,8% against the euro to R11,50.

Prices of all long Merino categories were between 1% and 2% firmer.

The offering comprised 5 353 bales of which 94% was sold. Major buyers were Modiano (1 465 bales); Segard Masurel (1 203 bales); Standard Wool SA (1 072 bales); and Stucken (619 bales).

Average price movements for AWEX-type fleeces MF4 and MF5 of 70 and 80 mm were as follows: 19 microns strengthened by 0,7% at R68,10/kg, 20 microns were up 1,4% at R58,24/kg; 21 microns gained 2,1% at R54,19/kg; 22 microns rose 1,7% at R52,71/kg, 23 microns gained 1,9% at R51,02/kg.

There were no quotes for 24 and 25 microns due to insufficient quantities in these particular categories.

Due to next Wednesday being a public holiday, the next sale will be held on Tuesday (23 September) when approximately 7 500 bales will be offered.

Capewools

More Capewools News...