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.
