Wool market slightly softer

13 May '10

2 min read

Wool prices were slightly softer at this week's sale and the Cape Wools Merino indicator shed 1% compared with the previous sale two weeks ago to close at R60,92/kg (clean).
The downward trend is in line with Australia where prices have been moving downward following a slowing down in Chinese buying.

The rand was 0.6% weaker against the US dollar compared with the previous sale, trading at R7,46 against the dollar, but was 3.3% stronger against the euro at R9,46. Generally, good quality long fleece wools were in keen demand and prices for some of these categories were up. A total of 7 993 bales was offered of which 97% was sold. Major buyers were Standard Wool SA (2 316 bales); Modiano SA (1 695 bales); Lempriere SA (1 585 bales), and Stucken (1 345 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns were up 1.2% at R69,59/kg; 19,5 microns were 1% cheaper at R66,25/kg; 20 microns dropped 3% to close at R63,32/kg; 20,5 microns gained 1.6% to R63,13/ kg; 21 microns rose 1.3% to R63,23/kg; 21.5 microns were down a marginal 0.3% to close at R62,77/kg, and 22 microns were 2.3% cheaper at R61,26/kg.

No sale has been scheduled for next week. Sales will resume on 26 May, the penultimate sale, when approximately 8 000 bales will be offered.

Cape Wools SA

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