Ricochet News

“Dismal Performance” at First Wool Sale after Christmas Recess

JANUARY 15, 2015
“Dismal Performance” at First Wool Sale after Christmas Recess

The wool market put up a “dismal performance” at the first sale after the Christmas recess on Wednesday.

The Cape Wools Merino Indicator shed 1.6%, compared to the closing sale on the previous season to close at R107.93/ kg (clean), a decrease of 3.3% on the opening sale and 6.7% down on the corresponding sale of last year.

Cape Wools said in a statement that buyers had attributed the weaker market to the current low commodity prices and the fact that “a large percentage of the offering consisted of low quality wool.

“The expectation of a significantly large offering next week also placed downward pressure on prices.”

However, Cape Wools said, good quality, well-grown Marino wools “remain highly sought after”.

It reported that the sale had resulted in a clearance of 97% of the 11 928 bales. The next sale is scheduled for January 21 when approximately 19 000 bales will be on offer. - MetroMinutes.


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