The wool market opened the new season with a flying start at this week’s (17 August 2017) sale with the Cape Wools Merino Indicator increasing by a phenomenal 19,8% and by 3 036 points, closing at a value of R183,50 for clean wool. This is 25% up on the corresponding sale of the previous season. The Australian Environmental Management Inspectorate (EMI) gained 8,8% this week.
Traders attributed the sterling performance of this large auction to strong demand for good quality long South African Merino wool from buyers in China, India and the Czech Republic as a result of the continued growth in consumer demand for wool apparel. Competition between buyers was as fierce as could be expected in a sellers’ market where demand will continue to outstrip a growing supply.
The weaker Rand also supported the strong results. This week saw the Rand at R13,25 to the US Dollar and R15,52 to the Euro. The Rand was 3,1% weaker against the US Dollar and 7,4% weaker against the Euro, compared with the average rate at the previous sale. The offering comprised of 13 865 bales of which 97,6% was sold. Major traders were Modiano (4 130), Standard Wool SA (3 598), Lempriere SA (2 047) and Tianyu SA (1 881).
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 increased 9,3% to close at R223,59/kg;
- 18,5 microns moved 20,6% up to close at R213,50/kg;
- 19 microns gained 16,3% to close at R205,56/kg;
- 19,5 microns strengthened by 16,6% to close at R191,02/kg;
- 20 microns was 21,8% stronger to close at R184,17/kg;
- 20,5 microns won 22,4% to close at R177,61/kg;
- 21,0 microns recovered by 19,5% to close at R172,56/kg;
- 21,5 microns improved by 24,0% to close at R175,82/kg;
- 22 microns rose 22,6% to close at R166,16/kg;
- 22,5 microns climbed by 22,4% to close at R161,52/kg.
Based on the annual change to the composition of the indicator, the last sales indicator was adjusted from R152,18 to R153,14.
The next sale is scheduled for 23 August 2017 where approximately 8 389 bales will be on sale. –Wool market