The Rand’s sharp fall played a major role in pushing the Merino indicator to a fresh seasonal high of R66,35/kg (clean), up 3,1% on the week and 18,6% on the opening level, said Ona Viljoen of Cape Wools.
“The rand fell to its lowest level against the US dollar in six months,” she said. “It was trading at R7,64 against the dollar, which was down 6,4% on last week, and at R11,16 against the euro (-5,2%). In Australia, the market pulled back 3,3% on last week, confirming the significant support the cheaper rand gave SA this week. The finer end of the market posted the biggest increases with 19 microns and 20 microns gaining 4% to 5%, but purchases were spread quite evenly among processors and greasy wool exporters.
This week also saw a smaller offering of 7 392 bales, which was almost 2 000 bales less than the previous week, and a sales percentage of 99% was achieved.” According to James de Jager, general manager for wool at Cape Mohair and Wool the limited supply of long wool was the main driver at the sale. “The lack of better-grown long wool is still a major concern and should support these price levels to the end of the season. The rand will be closely monitored for the sales ahead to determine sustainable local price levels. Asia is giving signs of substituting blends for wool, lower orders and falling production. This could have an effect in the long run.”
Ken Craig of BKB told Farmer’s Weekly this was the 20th wool sale of the season and that the market indicator is now 30% higher than a year ago, while over the same period the rand has depreciated 7% against the US dollar. “The weaker rand is expected to remain weak for the foreseeable future and is likely to neutralise any correction in the market,” he said.
Major buyers were Standard Wool SA (1 881 bales); Modiano (989 bales); Chargeurs Wool (962 bales); Lempriere (Aus) Ltd (943 bales); Stucken (685 bales); ADF (678 bales); and Segard Masurel (601 bales). verage price movements for AWEX-type fleeces, MF4 and MF5 of 70mm and 80mm were as follows: 19 microns gained 4,4% at R87,83/kg; 20 microns were up 5,4% at R76,85/kg; 21 microns rose 1,6% dearer at R68,19/kg; 22 microns were up 5,4% at R65,70/kg, but there are no quotes for 23, 24 and 25 microns due to insufficient quantities in these categories. – Roelof Bezuidenhout