Although the market has seen a slight correction to the sharp price increase of wool, the Australian market has remained very firm and the underlying trend remains positive.
“Good style wools have been least affected by the price adjustment which has been mainly on average wools,” said Jack Lapersonne of SBL Wool, which achieved the SA record price of R75/kg greasy (R108,10/kg clean) for two bales of 17,0 micron produced by RJ Flanegan of Stutterheim.
Johan Louw of Cape Mohair and Wool described the market as “having moved sideways – despite a stronger rand and a smaller offering – because of the exceptionally large offering in Australia.” But he warned a degree of price resistance could emerge sooner or later. BKB’s Ken Craig thought the market showed signs of consolidating.
Generally the market should trade around current levels for the remainder of the season if the rand remains steady.’ Compared with Australia, premium prices are still being achieved in SA at the stronger end of the market and super quality, sound fine wool is also still selling high.
“However, a further correction can be expected for these types. Generally the market should trade around current levels for the remainder of the season if the rand remains steady,” he said. Cape Wools’ indicator closed 1,1% down at R37,93/kg (clean). “
Buyers say the market is still adjusting after the sharp increases of the past few weeks and that some clients are resisting current price levels. The overall indicator currently is up 26% on the opening level in August 2006,” said Cape Wools spokesperson Ona Viljoen. All long Merino fleece wools were down 1% to 1,5%. The worst performer was 23 microns which dropped 4,6%.
Average price movements for Australian Wool Exchange-type fleeces MF3, MF4 and MF5 of 70mm and 80mm were: 20 microns were down 1,2% at R54,14/kg; 21 microns shed 1,5% at R51,54/kg; 22 microns were 1,1% softer at R50,56/kg and 23 microns were down 4,6% at R47,63/kg. There were no quotes for 19, 24 and 25 microns. A total of 7 631 bales were offered, 91% of which changed hands. Major buyers were SA Wool Exporters (2 110 bales), Modiano (1 380 bales), Segard Masurel (1 019 bales) and Stucken (900 bales). – Roelof Bezuidenhout