The 28th sale of the 2019/20 wool season took place recently with 7 603 bales on offer of which 94,4% was sold. The wool market closed 4,1% (583 points) up at a value of R148,55/kg for clean wool. The Australian EMI moved 1,1% up this week.
This week the rand was 4,9% stronger against the US dollar and 1,5% stronger against the euro, compared with the average rate at the previous sale. The market improved by 9,4% in US dollar terms.
Active participation by all buyers on the auction floor
The wool market rebounded with a strong performance, despite the stronger South African currency of 4,9% against the US dollar. The market gained 4,1% from the previous sale and increased with 9,4% in US dollar terms, with an overall sales clearance of 94,38%.
The good market performance mimicked the positive results emanating from Australia over the past week, with continued stable results in Australia throughout the sale.
Improved market sentiment led to active participation by all buyers on the auction floor, especially the medium micron categories, with good quality lots performing better than the market average. The limited bins offered, as well as the increased competition for the sustainable lots on offer compared to the last sale held two weeks ago, assisted in the gains achieved on the sale.
The major buyers were Standard Wool SA, Stucken & Co, Lempriere SA and Modiano SA.
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:
- 18,0 microns increased 3,3% to close at R168,89/kg.
- 18,5 microns moved 2,5% up to close at R167,44/kg.
- 19 microns gained 2,1% to close at R157,72/kg.
- 19,5 microns strengthened by 4,3% to close at R155,71/kg.
- 20 microns was 4,5% stronger to close at R147,08/kg.
- 20,5 microns won 3,9% to close at R148,19/kg.
- 21,0 microns recovered 4,9% to close at R143,13/kg.
- 21,5 microns improved by 3,5% to close at R147,12kg.
- 22 microns rose 1,2% to close at R137,86/kg.
- 22,5 microns climbed by 1,9% to close at R136,52/kg.
The next auction is scheduled for 18 June 2020, where approximately 8 470 bales will be on sale. – Cape Wools SA