The wool market ended lower this week and the Cape Wools Merino Indicator decreased by 3,3%, 736 points, to close at a value of R214,42 for clean wool. The Australian EMI lost 1,3% this week.
The Cape Wools All Wool Indicator fell by 3,3%. Although the offering consisted of good quality long fine wools, the market came under pressure due to the continuous limitation on export of wool to China.
The shorter wools were under more pressure, as buyers are forced to make their selection criteria stricter within the current trading environment.
Sustainable clips once again achieved premium prices on today’s auction. The market declined by 4,2% in US terms from last week, highlighting the difficult trading environment. This week saw the rand at R14,34 to the US dollar and R16,19 to the Euro.
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows:
- 18 microns fell 3% to close at R237,87/kg;
- 18,5 microns moved 3,1% down to close at R235,65/kg;
- 19 microns lost 3,2% to close at R232,99/kg;
- 19,5 microns weakened by 3,4% to close at R228,66/kg;
- 20 microns dropped 3,6% to close at R225,32/kg;
- 20,5 microns lost 2,8% to close at R221,05/kg;
- 21 microns lost 3,1% to close at R216,02/kg;
- 21,5 microns moved 0,7% down to close at R214,58/kg;
- 22 microns fell 2,4% to close at 213,76/kg and
- 22,5 microns declined by 1,4% to close at R211,73/kg.
The next sale is scheduled for 20 March where about 5 220 bales will be on sale. – Market report