The market report

The Australian EMI increased by 4,8% this week.

The Cape Wools All Wool Indicator increased by 5,6%. The wool market is trading at record levels driven by a seemingly insatiable demand for wool and in particular for quality long and fine wool.

Producers received excellent returns with a record price of R218.10/kg (greasy) paid to NEJ Outram & Sons for 16 micron wool brokered by CMW woolbrokers.

This was a larger sized auction of which the majority of wool on offer was of medium length and tested fine.

The weaker Rand had little influence.

As the season nears it’s close it is evident that the seasonal deliveries to broker stores will end significantly lower to the previous season. Competition between buyers was good with Standard Wool SA buying the most bales on offer. This week saw the Rand at R12,61 to the US Dollar and R14,79 to the Euro.

The Rand was 0,1% weaker against the US Dollar and 1,0% stronger against the Euro, compared with the average rate at the previous sale.

The offering comprised of 9 358 bales of which 99,0% was sold.

Major traders were Standard Wool SA (3 249), Tianyu SA (1 819), Modiano (1 629) and Lempriere SA (1 288). 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 increased 5,7% to close at R237,55/kg; 18,5 microns moved 5,0% up to close at R224,38/kg; 19 microns gained 4,6% to close at R209,14/kg; 19,5 microns strengthened by 5,2% to close at R203,89/kg; 20 microns was 5,9% stronger to close at R203,21/kg; 20,5 microns won 6,1% to close at R200,98/kg; 21,0 microns increased by 6,3% to close at R201,32/kg; 21,5 microns improved by 5,6% to close at R197,78/kg; 22 microns rose 5,9% to close at R196,98/kg and 22,5 microns gained by 5,5% to close at R190,21/kg. The next sale is scheduled for 30 May 2018 where approximately ± 5 627 bales will be on sale..