South Africa Wool Market Report (25 October 2017)
The wool market traded stronger and the Cape Wools Merino Indicator increased with 1,6% and by 279 points to close at a value of R181,99 (Clean). On the Australian market, the EMI lost 0,3% this week. The Cape Wools All Wool Indicator gained 1,7%.
Despite a volatile Rand and increased volumes delivered to broker stores the wool market excelled and gained 1.6%. Buyers reported excellent demand for finer wool and a record price was fetched for a remarkable batch of lambs wool. Good quality long wool enjoyed good demand and medium length wool showed significant increases due to its growing popularity.
Competition between buyers remains intense as they secure their market share. Standard Wool bought the largest volume of bales with Modiano a close second.
This week saw the Rand at R13,74 to the US Dollar and R16,17 to the Euro. The Rand was 2,1% weaker against the US Dollar and 2,2% weaker against the Euro, compared with the average rate at the previous sale. The offering comprised of 9 870 bales of which 98,4% was sold. Major traders were Standard Wool SA (2 866), Modiano (2 771), Tianyu SA (1 904) and Lempriere SA (1 013).
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 1,0% to close at R229,87/kg; 18,5 microns gained 0,8% to close at R216,01/kg; 19 microns gained 0,7% to close at R201,62/kg; 19,5 microns strengthened by 1,0% to close at R189,87/kg; 20 microns was 1,2% stronger to close at R179,32/kg; 20,5 microns increased 0,2% to close at R171,25/kg; 21,0 microns recovered 0,9% to close at R166,83/kg; 21,5 microns declined by 0,3% to close at R160,79/kg; 22 microns fell 0,3% to close at R156,74/kg and 22,5 microns declined by 0,5% to close at R153,50/kg.
Main buyers this week: Wool SA 2866 bales, G Modiano SA 2772, Tianyu SA 1904, Lempriere SA 1013, Stucken & Co 769, Segard Masurel SA 370, New England Wool SA 19 bales.
The next sale is scheduled for 01 November 2017 where approximately ±10 013 bales will be on sale.
Source: Cape Wool SA
