The South African wool market traded some 2.8% lower this week. This despite the dip taken by the Rand compared
to last week’s exchange rate. This came about in pursuit of the Australian market which also traded lower this week.
Wool of 19micron and finer was down by some 2%, while wool of 19-20micron lost 3%. Wool of 20-22micron likewise shed 2%. Prices for the stronger micron groups remained largely unchanged. Medium length wool sold for slightly less, but the shorter wool of D-length once again took a severe beating this week. However, the competition remains firm, seeing just about 99% of the offering sold. The highest price for OVK this week of R200.00/kg was paid for a BH lot of 16micron from the clip of. The D and M Family Trust of Barkly East. The buyer was Standard Wool.
What stood out this week was that the weakening Rand against the US Dollar had no impact whatsoever on prices. The Rand has been fluctuating for two weeks now up, and then down and up again and this as a consequence of the rumours about expropriation of ground without compensation. Nothing of this will, however, come about overnight, if at all. The national market-indicator dropped by some 2.8% this week and is currently at R180.42/kg clean-yield. This drop is largely due to the weaker Australian market this week. It is more than likely that this will only be temporary and that the Australian market will once again reach new heights, with the South African market following suit.
This report by Pierre de Lange, Wool Marketing Manager – OVK.
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