SOUTH AFRICAN WOOL MARKET SOFTENS (12 September 2013)

PORT ELIZABETH. – Prices declined at this week’s sale, which saw the Cape Wools Merino indicator shed 3.5% to close at R111,98/kg (clean).

Traders were hesitant and questioned the sustainability of current price levels as well as the strength of the renewed consumer demand.

The stronger rand against the US dollar also played a contributing role. The softening in wool prices reflected the global market, as was also experienced in the weakened Australian market.

The rand on the day was 2.6% stronger at R9,96 against the US dollar, compared with last week’s average rate, and strengthened 2% against the euro at R13,20.

Prices were down across the board with the stronger wools posting the biggest decreases.

A total of 8 541 bales were on offer, of which 97% was sold. Most active buyers were Standard Wool (2 488), Modiano (2 425), Lempriere (1 510) and Stucken & Co (1 169).

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down 0.5% to R123.41/kg, 18,5 microns shed 2.6% to R120.35/kg, 19 microns dropped 3% to R117.90/kg, 19,5 microns weakened by 3.1% to R115.77/kg, 20 microns shed 3.7% to close at R113.18/kg, 20,5 microns were down 3.8% at R111.69/kg, 21 microns dropped 3.5% to R110.91/kg, 21,5 microns were 4.1% cheaper at R110.56/kg and 22 microns were down 4.7% to close at R109.45/kg.

The next sale is scheduled for 18 September where approximately 6 000 bales will be on offer.