Wool market is 6,5% higher

The wool market traded 6,5% higher this week and the Cape Wools Merino Indicator increased by 996 points to close at a value of R163,06 (Clean). On the Australian market, the EMI increased 2,3%. The Cape Wools All Wool Indicator gained 6,5%.

CSIRO via Wikimedia Commons

At this week's auction, there was good quality wool on offer with the majority of wool again between 40-55mm in length. Buyers commented that there was extreme competition for the longer and better quality wools. There are two auctions left for this season.

This week saw the Rand at R15,77 to the US dollar. The rand weakened by 6,9% against the US dollar compared with the average rate at the previous sale. The Rand weakened 4,8% against the Euro, trading at R17,77.

The offering comprised of 8,412 bales of which 97,3% was sold. Major traders were Standard Wool SA (2,772), G Modiano SA (2,219), Lempriere SA (1,721) and Stucken & Co (996).

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 gained 5,4% to close at R177,76/kg; 18,5 microns increased 7,0% to close at R173,12/kg; 19 microns increased 7,7% to close at R171,30/kg; 19,5 microns gained 8,5% to close at R169,41/kg; 20 microns increased with 7,7% to close at R168,40/kg; 20,5 microns increased 6,8% to close at R167,53/kg; 21,0 microns gained 6,9% to close at R167,48/kg; 21,5 microns gained 6,1% to close at R163,86/kg; 22,0 microns increased 6,2% to close at R163,48/kg and 22,5 microns increased 7,3% to close at R164,77/kg.

The next sale is scheduled for 01 June 2016 where approximately ±9,022 bales will be on sale.

Source: INET BFA