The wool market traded lower at the most recent auction and the Cape Wools Merino Indicator decreased by 2,6% and by 508 points to close at a value of R192,35 for clean wool. The Australian EMI lost 0,3% this week. The Cape Wools All Wool Indicator declined by 2,8%.
There was solid demand for good quality fine wool, yet buyers were reticent to over-extend themselves at these high levels. The strengthening Rand also contributed to the market decline. The offering was evenly spread with the bulk testing 20 micron and finer. Larger seasonal offerings will continue as the season unfolds, yet a smaller drought reduced clip is expected.
Competition between buyers was intense with Modiano buying by far the largest volume of bales.
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 5,3% to close at R232,12/kg
- 18,5 microns moved 2,9% down to close at R226,60/kg
- 19,0 microns lost 3,3% to close at R212,56/kg
- 19,5 microns weakened by 1,7% to close at R202,85/kg
- 20,0 microns was unchanged to close at R193,89/kg
- 20,5 microns was unchanged at R183,91/kg
- 21,0 microns lost 1,6% to close at R175,39/kg
- 21,5 microns declined by 1,8% to close at R168,06/kg
- 22,0 microns decreased by 2,2% to close at R164,08/kg
- 22,5 microns declined by 1,9% to close at R161,20/kg
The next sale is scheduled for 29 November 2017 where approximately 14 858 bales will be on sale. -Market report