Weaker Rand Supports Wool Market

OCTOBER 2, 2014

The weaker Rand supported the wool market at this week’s sale with the Cape Wools Merino Indicator gaining 0.5% to close at R115.26/kg (clean).

Cape Wools said this was 2.2% higher than the opening sale of the season and 0.1% up on the corresponding sale last season.

“Solid demand for good quality wool underscored the market, although a smaller offering with a substantial percentage of low grade wool put prices under pressure.”

The Rand on the day was trading 1.8% weaker at R11.30 against the United States Dollar compared with last week’s average rate, while at R14.24 it had appreciated by a marginal 0.4% against the Euro.

The sale resulted in a 98% clearance of the 6764 bales on offer. The next sale is scheduled for October 8 when approximately 8 400 bales will come under the hammer. - metrominutes