The last sale before Easter SAW THE market remaining virtually unchanged, with Cape Wools’ Merino indicator closing the day down just 0,6% at R69,52/kg (clean).
Cape Mohair & Wool’s James de Jager says the rand’s inconsistent performance against major currencies has made buyers cautious. “But the Australian sheep population of 85 million is at an 84-year low and expected to increase at a modest rate to 96 million during the 2012/13 season. Subdued Australian wool production, which shouldn’t increase significantly until the 2009/10 season, should support present price levels.
“The uncertain US economic growth and its effect on finished wool products is reflected in Chinese buying – the US is one of the largest markets for Chinese apparel. Cotton, one of wool’s biggest textile competitors, is trading at the highest levels in a decade, which should also help to sustain current levels.” The market was firm across all micron categories compared to the previous sale. The finer end, which was most affected, weakened by 1%. The lack of coarser Merino micron categories has increased demand and prices rose 2%. The highest price was R75 for four bales BH of 17,1 micron from WJ Jordaan, Cradock. The average accumulated Cape Mohair & Wool price premium, compared with the national average of 2007/08, was 3%. O na Viljoen of Cape Wools said most long wool categories were slightly cheaper. The worst affected, 20 microns, dropped by about 2%.
There were a total of 10 430 bales of which 96% were sold. Major buyers were Standard Wool SA (2 336 bales), Modiano (2 277 bales), Chargeurs Wool (1 456 bales), and Stucken (1 442 bales). Average price movements for AWEX-type fleeces, MF4 and MF5 of 70mm and 80mm were: 19 microns down 1,2% to R86,98/kg, 20 microns down 2,3% to R75,53/kg; 21 microns were 0,6% cheaper at R70,85/kg, 22 microns were down 0,8% at R69,22/kg and 23 microns weakened by 0,9% to R67,73/kg. – Roelof Bezuidenhout
