Wool market under pressure at latest sale

NOVEMBER 27, 2014

The wool market “came under pressure” at this week's sale, with the Cape Wools Merino Indicator shedding 1.9% to close at R100.48/kg (clean). Cape Wools said this was a 1.9% decrease on the opening sale and 1.8% down on the corresponding sale of the previous season. On the Australian market the indicator gained 0.3%.

It said traders attributed the softer market to “a very large offering that was offered on the Australian market with the prospect of two large offerings on the South African market in the upcoming weeks. Lacklustre demand from China also contributed to the decrease in price.”

The sale resulted in a 98% clearance of the 9 178 bales on offer. The next sale is on December 3 when approximately 12 000 bales will be on offer. - metrominutes