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.