The wool market traded lower and the Cape Wools Merino Indicator decreased by 2,5% and by 438 points to close at a value of R172,64 (Clean). The Australian EMI decreased by 0,8% this week. The Cape Wools All Wool Indicator decreased by 2,9%.
The wool market traded softer and the recent steady decline continued which affected all types across the board. The demand for quality long and fine wool remains strong. This was a large auction however seasonal deliveries still significantly lag the previous season to date which is a concern. The stronger Rand was reflected in the decline.
Competition between buyers was good with Modiano buying the most bales on offer.
This week saw the Rand at R11,69 to the US Dollar and R14,49 to the Euro. The Rand was 0,6% stronger against the US Dollar and 0,5% stronger against the Euro, compared with the average rate at the previous sale. The offering comprised of 12393 bales of which 97,5% was sold. Major traders were Modiano (4 546), Standard Wool SA (3 455), Tianyu SA (1 802), and Lempriere SA (1 442).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18,0 microns decreased 4,4% to close at R208,74/kg; 18,5 microns moved4,0% down to close at R197,18/kg; 19 microns lost4,3% to close at R183,79/kg; 19,5 microns weakened by1,3%to close at R177,64/kg; 20 microns was 1,6% weaker to close at R172,72/kg; 20,5 microns lost2,1% to close at R169,76/kg; 21,0 microns lost 0,9% to close at R169,79/kg; 21,5 microns decreased by 2,4%to close at R163,80/kg; 22 microns decreased by 0,9%to close at R162,78/kg and 22,5 microns declined by 1,8%to close at R156,96/kg.
The next sale is scheduled for 11 April 2018 where approximately ± 10 620 bales will be on sale.
Source: Cape Wools SA