Wool market closes 0,1% higher

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The South African wool selling season continued with a recent offering of 6 707 bales, which consisted of good quality wools. The majority of wools fell in the medium length category, with an overall sales clearance of 93,2%. The wool market closed 0,1% (17 points) up at a value of R142,50/kg for clean wool. The Australian EMI moved 2,6% down this week.

This week the rand was 0,9% weaker against the US dollar and 1,2% weaker against the euro, compared with the average rate at the previous sale. The market weakened by 0,8% in US dollar terms.

Wool market performs well

Considering the current uncertain trading environment, the market performed well, closing slightly up from the previous sale by 0,1% but weakening by 0,8% in US dollar terms. The positive market performance was in contrast with the Australian market, which closed 2,6% (AU$) down this week, supported by the weaker South African currency of 0,9% against the US dollar.

There was good competition from the buying houses for better quality selected merino wools, especially in the medium length and broader micron segment, which pushed the market into positive levels.

The major buyers on the sale were Standard Wool SA, Modiano SA, Lempriere SA and Stucken & Co.

Average price per category

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 2,8% to close at R168,45/kg.
  • 18,5 microns moved 2,1% down to close at R156,22/kg.
  • 19 microns lost 1,7% to close at R151,51/kg.
  • 19,5 microns weakened by 1,3% to close at R146,29/kg.
  • 20 microns was 1% stronger to close at R142,94/kg.
  • 20,5 microns won 0,7% to close at R143,21/kg.
  • 21 microns recovered 1,9% to close at R142,05/kg.
  • 21,5 microns improved by 1,7% to close at R144,85kg.
  • 22 microns rose 3,6% to close at R139,20/kg.
  • 22,5 microns climbed by 1,4% to close at R134,78/kg.

The next sale is scheduled for 1 July 2020. – Cape Wools SA