The 19th wool sale saw the merino wool indicator ease 0,2% to close at R6,23/kg clean. That puts the BKB market indicator 26% higher than a year ago, with the rand trading at similar levels against the dollar, according to Ken Craig of BKB. “Prices are trading at historically high levels making growers positive about the market. Favourable wool-growing conditions will also help growers supply a high-quality product,” he said.
However, Mohair and Wool reports that while the weaker rand supported prices, the additional offering of 20 000 bales on the Australian market next week, together with the Chinese holiday, has caused uncertainty about a possible oversupply. O n this week’s sale, qualities with low tensile strength, as well as shorter wools, were slightly cheaper. Brokers believe better tested wools will continue to enjoy good support. Buyers are buying against existing orders and are reluctant to accumulate stock at current levels. Retailers are also managing their stock closely. na Viljoen of Cape Wool noted the market held on to its gains of last week with the prices of most types finishing relatively unchanged. Wool’s Merino indicator closed the day 0,4% down at R64,36/kg (clean). “The market remains strong, with the weaker rand providing support at this week’s sale to maintain a level of above R64/kg (clean).” S ome 96% of the 9 258 bales offered were sold. Major buyers were Chargeurs Wool (1 635 bales); Standard SA (1 575 bales); Stucken (1 176 bales), Segard Masurel (1 173 bales), and Modiano (960 bales). Average prices for AWEX-type fleeces, MF4 and MF5 of 70mm and 80mm were as follows: 19 micron was unchanged at R84,10/kg; 20 micron was down 0,8% at R72,93/kg; 21 micron was 0,8% cheaper at R67,10/kg; 22 micron dropped 2,9% at R62,35/kg, and 23 micron was a marginal 0,4% dearer at R61,55/kg. – Roelof Bezuidenhout
