Wool prices slightly softer: Cape Wools

Cape Wools said in a statement on Wednesday, 9 May 2012, that competition was weaker as a result of decreased demand from China and other markets as the crisis in Europe deepened, affecting China's exports.

Demand for long quality fleeces, however, remained relatively firm but prices were down on the previous week.

The rand weakened as investors fled to safety in the US dollar and at R7.89 was 2.2% down against the greenback compared with the average rate at the previous sale, while it was a marginal 0.4% down against the euro at R10.23.

This week's offering comprised 7,715 bales of which 96% was cleared.

Major buyers were Standard Wool SA (2,343 bales), Lempriere SA (2,104 bales), Modiano SA (1,028 bales) and Stucken & Co (1,026 bales).

The average clean prices for the different categories good top-making (MF5), long fleeces were as follows: 18 microns were 1% down at R112.96/kg, 18.5 microns dropped 1.1% to R112.58/kg, 19 microns were 2.5% cheaper at R110.93/kg, 19.5 microns were down a marginal 0.2% to R108.59/kg, 20 microns shed 1.6% to close at R105.30/kg, 20.5 microns were down 0.8% at R104.82/kg, 21 microns dropped 1.8% to close at R102.87/kg and 21.5 microns were a slight 0.2% dearer at R103.21/kg. There were no quotes for 22 microns.

No sale has been scheduled for next week and the next one will take place on 23 May.