Herald Reporter
WOOL prices declined at this week's sale on the back of ongoing concerns about the global economy and the slowdown in economic activity in China.
The Cape Wools Merino indicator shed 2.4% compared with last week to close on Wednesday at R86.26/kg (clean).
The state of the global economy is negatively affecting the Chinese textile industry, which re-exports about 60% of the wool imported in some or other processed form.
The South African market also followed Australia, where the indicator was down for a fifth week in a row.
It was a fairly small sale, with 5794 bales on offer, of which 96% were sold.
Major buyers were Standard Wool SA (2357 bales), Modiano SA (983), Lempriere SA (869) and Stucken & Co (779).
Prices varied across the categories with 18 microns slightly dearer. The broader types fell the most.
The average clean prices for good top-making (MF5) long fleeces were: 18 microns were up 0.6% at R99.96/kg, 18.5 microns shed 0.7% to R94.73/kg, 19 microns fell 0.7% to R93.66/kg, 19.5 microns fell 2.4% to R91.22/kg, 20 microns were 2.5% cheaper at R90.39/kg, 20.5 microns were down 2.7% at R90/kg, 21 microns fell 2.6% to R89.87/kg, 21.5 microns fell 2.4% to R89.61/kg and 22 microns shed 3% to R89.10/kg.
About 5000 bales will be offered at next week's sale.
