The wool market surged upwards by a substantial 12,1% this week to close at R169,71/kg. A total of 13 176 bales were on offer after 2 773 bales were withdrawn prior to the sale, with an overall sales clearance of 97,2% on the bales offered. Of the total offering, more than 60% of the wool offering was 20 micron and finer, with certified sustainable wools comprising 55,8% of the Merino wools on offer.
Excellent interest from all buyers
The good-quality offering attracted excellent interest from all buyers, with overall better market sentiment and good demand from China driving all micron categories upwards. The certified sustainable wools on offer once again had excellent competition from the buying houses and outperformed the market.
The rand traded 1,6% weaker against the United States (US) dollar, resulting in a 10,31% increase in the market in US dollar terms. The Australian market increased by 5,99% in Australian dollar terms from their last sale on 21 January.
Average price category in the wool market
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows:
- 18 microns increased 11,8% to close at R220,09/kg.
- 18,5 microns moved 10,8% up to close at R200,99/kg.
- 19 microns gained 12,2% to close at R188,73/kg.
- 19,5 microns strengthened by 13,9% to close at R177,92/kg.
- 20 microns was 14% stronger to close at R168,06/kg.
- 20,5 microns won 15,0% to close at R161,18/kg.
- 21 microns recovered 13,1% to close at R158,43/kg.
- 21,5 microns improved by 13,3% to close at R154,60kg.
- 22 microns rose 12,3% to close at R146,98/kg.
- 22,5 microns climbed by 10,5% to close at R141,04/kg.
The next auction is scheduled for 3 February 2021, where approximately 9 538 bales will be on sale. – Press release, Cape Wools
Read the previous report here.