The wool market ended lower at this weeks’ auction and the Cape Wools Merino Indicator was down by 2.7% and by 586 points to close at a value of R215,16 for clean wool. The Australian EMI gained 0.4% this week. The Cape Wools All Wool Indicator lost by 2.6%. The South African market indicator was down by 2.7%, largely due to the strength of the rand compared to last week (ending 25 January 2018).
There was a small correction in the US$ price due to the fact that, on the better wools, our market has been consistently higher than the Australian market. There was a very small offering of good wools on top of a small weekly offering of 5 700 bales.
Next week’s auction has been cancelled because of insufficient offerings mainly due to ongoing issues in Lesotho with no wool reaching the South African market from that country. This week saw the rand at R13,59 to the US dollar and R15,54 to the euro.
The average clean prices for the selection in the different micron categories for good top-making (MF5), long fleeces were as follows:
- 18,0 microns fell 3,3% to close at R238,07/kg;
- 18,5 microns moved 3,6% down to close at R247,41/kg;
- 19 microns lost 3,1% to close at R231,60/kg;
- 19,5 microns weakened by 3,5% to close at R230,16/kg;
- 20 microns was 3,0% weaker to close at R224,74/kg;
- 20,5 microns lost 2,6% to close at R223,76/kg;
- 21,0 microns lost 3,2% to close at R220,15/kg;
- 21,5 microns fell by 2,7% to close at R214,74/kg;
- 22 microns was down 1,8% to close at 211,99/kg and
- 22,5 microns declined by 2,6% to close at R208,98/kg.
There will be no auction next week. The next sale is scheduled for 13 February 2019. – Market report