Wool market slightly softer at latest sale

DECEMBER 4, 2014

Prices “declined marginally” at this week’s wool sale in Port Elizabeth, despite the weaker currency, with the Cape Wools Merino Indicator dropping 0.3% to close at R109.20/kg (clean).  Cape Wools said this was a decrease of 2.2% on the opening sale and 6.3% down on the corresponding sale last year. On the Australian market, the indicator gained 0.4%.

Cape Wools reported local traders as saying the fall in commodity prices was affecting the wool market, while the large offerings in Australia and South Africa “are placing additional down-ward pressure on prices”. Wednesday’s offering was 13 123 bales of which 96% was cleared to the trade. The final sale of this year is on December 10 when approximately 15 000 bales will be on offer. - metrominutes