SA wool market declines

Port Elizabeth - The South African wool market was substantially softer at this week's penultimate sale as demand remained subdued, Cape Wools said on Thursday.

Company spokesperson Ria Van Rooyen said Cape Wools' Merino indicator shed 6% compared to last week to close at R109.45 kg.

This was still 7.4% above the opening sale and is up 2.2% on the corresponding sale of the previous season.

Van Rooyen said the South African market was in line with the Australian market where the indicator dropped by 2.8%.

Traders attributed the weaker market to a general lack of international demand.

Long wools were in keen demand due to a shortage of supply.

A total of 8 275 bales were offered, of which 94% was sold on Wednesday.

Major buyers were Lempriere SA (2 778), Standard Wool SA (1 786) and G Modiano SA (1 420).

The last sale of this season is scheduled for June 4 with an estimated 15 500 bales on offer.