South Africa’s wool market closes softer
05/09/2008
Exporters are reporting a slowing of orders from downstream clients and say the trade is waiting for some direction. The weaker rand which, at R7.82, was its lowest level against the US dollar in two weeks, could not prop up the market. The currency was slightly stronger against the euro, trading at R11.29, up 0.8% compared with the previous sale.
Prices were down by 1-5% across all micron categories. Declines were less serious for the finer long wools.
A total of 10,062 bales were offered, of which 87% was sold. Major buyers were Modiano (2,647 bales); Standard Wool SA (1,998 bales); Stucken (1,204 bales), and Segard Masurel (1,175 bales).
Average price movements for AWEX-type fleeces MF4 and MF5 of 70 and 80 mm were as follows: 19 microns weakened 0.9% at R69.72/kg, 20 microns were down 5.1% at R57.68/kg; 21 microns dropped 3% at R54.75/kg; 22 microns shed 4.4% at R52.66/kg, 23 microns were down 5.4% at R51.73/kg, 24 microns were 3.2% cheaper at R50.12/kg, but there were no quotes for 25 microns due to insufficient quantities in this categories.
Approximately 9,000 bales will come under the hammer at next week’s sale.
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