The market report

The wool market closed 2,5% (514 points) down at a value of R202,25 c/kg (Clean), with the Cape Wools All Wool Indicator closing 2,5% lower.

The Australian EMI moved 1,2% down this week.

This week saw the Rand at 0,8% stronger against the US Dollar and 0,7% stronger against the Euro, compared with the average rate at the previous sale.

The market weakened by 1,7% in US Dollar terms. The wool market came under pressure today, following the downward trend in the Australian market and the stronger South African currency. Continued uncertainty regarding export certification and the economic trading environment in China, weighed the market down further resulting in a low sales clearance of 76.5%.

The large offering of fine micron merino wools supported market levels, with coarse and short wools experiencing the biggest downward pressure. The major buyers on today’s sale were: G Modiano SA (1 795), Standard Wool SA (1 022), Tianyu SA (499) and Stucken & Co (458). 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 5,8% to close at R223,35/kg; 18,5 microns moved 3,6% down to close at R222,00/kg; 19 microns lost 3,6% to close at R215,78/kg; 19,5 microns weakened by 2,7% to close at R213,85/kg; 20 microns was 1,9% weaker to close at R212,88/kg; 20,5 microns lost 4,5% to close at R208,11/kg; 21,0 microns lost 1,3% to close at R214,41/kg; 21,5 microns tumbled by 2,4% to close at R210,32/kg; 22 microns fell 2,4% to close at 211,11/kg and 22,5 microns declined by 0,1% to close at R206,47/kg. The next sale is scheduled for 29 May 2019.

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