Wool price hits resistance

THE wool market closed lower than previous sales at this week's Cape Wools SA sale in Port Elizabeth.

Cape Wools SA public relations officer Lizelle Delport said prices dipped at yesterday's sale in an apparent downward correction following the increases over the past couple of months.

The Cape Wools Merino Indicator shed 4.5% to close at R115.39/kg (clean).

"Although prices are down, the indicator is still 13.2% above the opening sale of the season. The softer market is attributed to some resistance against the high prices," Delport said.

"The South African market followed international trends, as Australia had also reported a 2.1% decline in wool prices," Delport said.

The rand was also stronger against the US dollar, trading at an average rate of R10.93, up 1.2% on last week's average rate.

The offering comprised 7663 bales of which 93% was sold. Finer microns were generally worse off with slightly better support for the better style and strength types, Delport said.

Major buyers were Lempriere (2219), Standard Wool (1713), Modiano (1245) and Stucken & Co (1138).

The average clean prices for the different categories of good top-making (MF5) long fleeces were as follows: 18 microns (µm) were down by 5.2% to R130.45/kg; 18.5µm dropped by 7.5% to R125.79/kg; 19µm shed 6.8% to R121.93/kg; 19.5µm were down by 4.8% to close at R119.61/kg; 20µm dropped by 3.6% to R115.31/kg and 21µm lost 2.7% to R114.21/kg.

The next sale is scheduled for Wednesday, where about 8500 bales will be on offer.