Wool market starts firm
This was 15.8% above the corresponding sale of last year. On the Australian Market, the indicator shed 4.9%. The Cape Wools All-Wool Indicator shed 7%.
Local traders attributed the firm market performance to the weaker rand and also to healthy demand from all quarters. China will remain the biggest driving force in the market for this season with good demand despite early season concerns of the Chinese economy.
The rand weakened by 3,8% against the US dollar compared with the average rate at the previous sale, trading at R12.80, while it was 2,4% weaker against the Euro at R14,23.
Major traders
The offering comprised of 11,570 bales of which 97,1% was sold. Major traders were Lempriere SA (3 030), Standard Wool SA (2 714), G Modiano SA (2 254) and Stucken & Co (1 817).
The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18,5 microns weakened by 8,1% to R135,57/kg, 19 microns dropped 8,0% to close at R135,11/kg, 19,5 microns dropped with 8,5% to close at R132,81/kg, 20 microns declined with 6,8% to close at R130,98/kg, 20,5 microns decreased with 7,1% to close at R130,44/kg, 21,0 microns dropped 7,2% to close at R129,24/kg, 21,5 microns weakened by 7,3% to close at R127,23/kg and 22,0 microns dropped with 6,6% to close at R126,77/kg.
Based on the annual change to the composition of the indicator, the last sales' indicator was adjusted from R141,20 to R138,87.
The next sale is scheduled for 19 August where approximately 6,000 bales will be on offer.
Source: INET BFA