Ricochet News

Wool market weakens at latest sale

Oct 30, 2014
Wool market weakens at latest sale

The wool market weakened at this week’s sale “as demand conditions remain tough,” with the Cape Wools Merino Indicator shedding 2.5% compared to last week to close on R120.09/kg (clean).

This was 2.2% down on the opening sale of this season and 1.2% down on the corresponding sale of the last season. Cape Wools said the local market had followed “the global trend,” with the Australian market also having closed 1.5% down.

“The market appeared indecisive and the disappointing volume of orders from China contributed to the lower prices,” while the stronger Rand also exerted downward pressure.

“Poorer quality wools, however, led to keen competition for the limited quantity of well-grown sound Merino wools. Local traders are concerned that the poor quality offerings will continue in the foreseeable future. “ - metrominutes