After a week’s recess in the 2021/22 wool season, the third wool auction of the season took place on 1 September, with a smaller volume of 7 263 bales on offer.
The market experienced mixed results across the various micron categories. However, it ultimately eased by 1,6% from the previous sale to close at R164,95/kg with a lower overall sales clearance of 86,18%.
The offering consisted predominantly of fine Merino wools, with wools certified as sustainable comprising 42,6% of the Merino wools on offer.
Although the market initially showed positive signs, it could not hold on to the gains. The certified sustainable wools once again traded at a premium above the average market levels.
The stronger South African currency at 3,06% against the United States (US) dollar affected price levels negatively, with the market delivering a positive return of 1,5% in US dollar terms.
The Australian market also experienced downward pressure this week and decreased by 1,3% (Australian dollars) from their previous sale held on 25 August. There was once again some seller resistance in the Australian market, resulting in higher passed in rates.
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 decreased by 3,5% to close at R222,49/kg.
- 18,5 microns moved 2,2% down to close at R211,53/kg.
- 19 microns lost 4,6% to close at R186,25/kg.
- 19,5 microns weakened by 2,6% to close at R173,82/kg.
- 20 microns was 1,1% weaker to close at R157,01/kg.
- 20,5 microns won 0,6% to close at R155,45/kg.
- 21 microns recovered 0,9% to close at R153,45/kg.
- 21,5 microns improved by 1,7% to close at R150,06kg.
- 22 microns fell 1,5% to close at R138,69/kg.
- 22,5 microns climbed by 1,1% to close at R137,90/kg.
The next wool auction is scheduled for 14 and 15 September 2021. – Press release, Cape Wools SA