Wool market strengthens
On the Australian market, the indicator gained 0,6%. The Cape Wools All Wool Indicator gained 2.5%.
The volatility within the Chinese economy kept everyone guessing as to the impact of this uncertainty on the South African wool market, however, traders commented there was good demand from China, although slightly muted on the day.
This week saw the Rand at R14,00 to the US dollar, an all-time low. The rand weakness increased Rand returns to producers.
The Rand weakened by 1.3% against the dollar compared with the average rate at the previous sale, trading at R13.62, while the euro weakened 0.4%, trading at R15.21.
The offering comprised of 4,944 bales of which 98.3% was sold. Major traders were Standard Wool SA (1,355), Lempriere SA (1,251), G Modiano SA (1,173) and Segard Masurel SA (469).
The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18.5 microns strengthened by 1.5% to R136.59/kg, 19 microns increased 2.5% to close at R135.55/kg, 19.5 microns gained with 1.7% to close at R132.32/kg, 20 microns increased with 1.7% to close at R130.27/kg, 20.5 microns gained with 1.9% to close at R129.56/kg, 21.0 microns strengthened 0.8% to close at R128.31/kg, 21.5 microns gained by 2.2% to close at R126.87/kg and 22.0 microns gained with 2.3% to close at R128.83/kg.
Source: INET BFA