Global uncertainty affects wool prices
Wool prices took another dip at this week's sale as the turbulence in commodity markets and market uncertainty continued and the Cape Wools market indicator dropped 5.5% to close the day at R86.61/kg (clean).
This means that the indicator currently is down by almost 6% on the opening sale in mid-August, Cape Wools said on Wednesday, 5 October 2011. The Australian market also lost ground with the indicator down 9% since then.
The rand was trading at R8.06 against the US dollar, which was down 3.3% from last week's average rate. At R10.74, it was 1% weaker against the euro.
This week's offering comprised 8 095 bales offered of which 87% was sold. Major buyers were Standard Wool SA (2 564 bales), Modiano SA (1 588 bales), Lempriere SA (1 310 bales) and Stucken & Co (1 218 bales).
Prices for most long fleece wools were down by between 4% and 7%. In contrast with last week, the medium wools were the worst affected at this week's sale.
The average clean price for the different categories good top-making (MF5), sound, long fleeces - less than 1% seed content - were as follows: 19 microns dropped 4.4% to close at R106.26/kg, 19.5 microns were down 4.6% to R100.99/kg, 20 microns declined by 5% to R95.38/kg, 20.5 microns were 6.2% cheaper at R91.89/kg; 21 microns weakened by 6.2 % to close at R90.29/kg, 21.5 microns were 7% cheaper at R88.47/kg and 22 microns fell by 6.5% to close at R86.48/kg.
Approximately 8 000 bales will be offered at next week's sale.
Source: I-Net Bridge
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