The wool market traded lower for a second auction in a row and has now receded by 10% from its seasonal high of 25,382 points. The strengthening Rand and sluggish demand resulted in a clearance of only 95% of a small offering. Prices decreased across the board with only the long and finer wool able to hold onto some of their recent gains.
Modiano bought the most bales at this auction.
This week saw the Rand at R14,30 to the US Dollar and R16,81 to the Euro. The Rand was 2,7% strongeragainst the US Dollar and 2,1% stronger against the Euro, compared with the average rate at the previous sale. The offering comprised 5 362 bales of which 95,1% was sold. Major traders were Modiano (1 554), Standard Wool SA (1 084), Tianyu SA (907) and Stucken & Co (612).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18,0 microns decreased 6,2% to close at R274,62/kg; 18,5 microns moved 5,2% down to close at R262,33/kg; 19 microns lost 6,8% to close at R254,02/kg; 19,5 microns weakened by5,1%to close at R249,11/kg; 20 microns was 6,9% weaker to close at R237,83/kg; 20,5 microns lost6,5% to close at R233,93/kg; 21,0 microns lost 5,2% to close at R235,95/kg; 21,5 microns decreased by 5,9%to close at R229,33/kg; 22 microns decreased by 8,0%to close at 227,33/kg and 22,5 microns declined by 6,7% to close at R234,51/kg.
The next sale is scheduled for 03 October 2018 where approximately ±7 450 bales will be on sale.
Source: Cape Wool SA
