The wool market held up well despite a stronger rand, with Cape Wools’ overall indicator closing a marginal 0,5% lower at R37,89/kg (clean), according to spokesperson Ona Viljoen in Port Elizabeth.
A ccording to Ken Craig of BKB, the market indicator is now 53% higher than a year ago, while over the same period the rand has depreciated by 16% against the US dollar. Johan Louw of Cape Mohair and Wool said the Australian market phenomenon of better qualities achieving premium prices was evident despite the Chinese New Year break.
He said the effect of the drought will be noticeable from April/May when volumes of more than 40 000 bales per auction will be difficult to achieve. “supply squeeze would normally drive the market upwards, but whether the remaining orders are enough to take up the offering remains to be seen. European purchases usually come to an end in mid-April when their season ends. So prices will be determined by Asian clients,” he said. total of 10 735 bales were offered and 96% were sold.
Average price movements for Australian Wool Exchange-type fleeces MF3, MF4 and MF5 of 70mm and 80 mm were: 20 microns were down 3,1% at R53,94/kg; 21 microns shed 1,7% at R52,62/kg; 22 microns were 1,5% cheaper at R51,26/kg, 23 microns were down 5,6% at R47,97/kg. There were no quotes for 19, 24 and 25 microns. ajor buyers were SA Wool Exporters (1 963 bales), Stucken (1 689 bales), Chargeurs Wool (1 420 bales), Modiano (1 301 bales), ADF (1 187 bales) and Segard Masurel (1 091 bales). – Roelof Bezuidenhout
