SOUTH AFRICAN WOOL MARKET DEARER (04/09/2014)

Port Elizabeth - The wool market was dearer at this week’s sale despite a stronger currency and the Cape Wool Merino indicator gained 3,8% to close at R108,70/kg (clean). This is 6,6% higher c ompared to the opening sale of this season and 5,3% higher compared to the corresponding sale of the previous season.

The local market strengthened in line with the overall trend which prevailed on international markets. The Australian market also improved with their indicator rising by 1,3% this week. There was brisk competition for good quality long fleece wools due to a rather small and inferior offering this week.

The rand on the day traded 1,7% stronger at R10,40 against the US dollar, compared with last week’s average rate and gained 1,8% against the euro at R14,34.A total of 5 918 bales were on offer of which 97% was sold. Major buyers were Standard Wool (1 643), Lempriere (1 574) and Stucken & Co (1 063).

The average clean prices for the selection within the different ca tegories good top -making (MF5), 70 -90mm and VM <=2% were as follows: 18 microns were up by 3,9% to close at R118,39/kg, 18,5 m icrons strengthened by 2,8% to R116,15/kg, 19 micronsincreased with 3,7% to close at R115,57/kg, 19,5 microns rose with 5,4% to close at R113,30/kg, 20 microns gained 3,7% to close at R110,69/kg, 20,5 microns increased with 2,4% to close at R108,3 9/kg, 21,5 microns gained 1,3% to close at R108,32/kg and 22 microns strengthened by 0,2% to R108,09/kg.

No sale has been scheduled for next week. Sales will resume on th e 23 April when approximately 11 000 bales will come.