South African Wool Market Closes Lower (02/13/2014 )

Prices dropped at this week’s sale in an apparent downward correct ion following the continuous increases over the past couple of months and the Cape Wools Merino Indicator shed 4,5 % to close at R115,39/kg (clean).

Although prices are down, the indicator is still 13,2% above the o pening sale of the season. The softer market is attributed to some resistance against the current high prices. The South African market followed international trend as Australia has reported a 2,1% decline in wool prices.

The rand was also stronger against the US dollar, trading at an av erage rate of R10,93, which is up 1,2% on last week’s average rate, while at R14,90, it had gained 1% against the euro.

The offering comprised of 7 663 bales of which 93% was sold. Finer microns were generally worse off with slightly better support for the better style and strength types.

Major buyers were Lempriere (2 219), Standard Wool (1 713), Modian o (1 245) and Stucken & Co (1 138).

The average clean prices for the different categories good top -making (MF5), long fleeces were as follows: 18 microns were down by 5,2% to R130,45/kg, 18,5 microns dropped by 7,5% to R 125,79/kg, 19 microns shed 6,8% to R121,93/kg, 19,5 microns were down by 4,8% to close at R119,61/kg, 20 microns dropped by 3,6% to R115,31/kg and 21 microns lost 2,7% at R114,21/kg.

The next sale is scheduled for 19 February where approximately 8 500 bales will be on offer.