The 25th sale of the 2019/20 wool season recently took place in Port Elizabeth, with 5 382 bales on offer of which 87,9% was sold. The wool market closed 6,4% (988 points) up at a value of R165,57/kg for clean wool. The Australian EMI moved 1,5% down this week.
This week the rand was 9,8% weaker against the US dollar and 9,5% weaker against the euro, compared with the average rate at the previous sale. The market weakened by 3,1% in US dollar terms.
First electronic sale of wool a success
Amid the current coronavirus lockdown in South Africa, an electronic sale of bales already in brokers’ stores was commenced this week. It was the first-ever wool sale of this nature and although it was time consuming and had its fair share of problems, the electronic sale was successfully completed over the last two days.
As volumes were limited, the sale only consisted of 5 382 bales of mixed length long and medium wool. There was better demand for the fine microns and some of the stronger micron wools experienced downward pressure, with some hesitancy evident from buying houses.
The market performed well and moved 6,4% up from the previous sale, although the market was down in US dollar terms and performed at levels comparable to the Australian market, which was down 1,5% in AU dollar terms this week.
The major buyers were Lempriere SA, Standard Wool SA, Stucken & Co 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 13,1% to close at R188,73/kg.
- 18,5 microns moved 7,0% up to close at R176,24/kg.
- 19 microns gained 7,0% to close at R172,83/kg.
- 19,5 microns strengthened by 5,2% to close at R169,40/kg.
- 20 microns was 5,3% stronger to close at R169,20/kg.
- 20,5 microns won 6,3% to close at R168,90/kg.
- 21,0 microns recovered 7,8% to close at R164,97/kg.
- 21,5 microns improved by 3,3% to close at R167,40kg.
- 22 microns rose 6,2% to close at R165,56/kg.
- 22,5 microns declined by 0,2% to close at R156,02/kg.
The next sale is scheduled for 30 April 2020. – Press release, Cape Wools SA