The 177th sale of the 2019/20 wool season recently took place in Port Elizabeth with 7 275 bales on offer, of which 95,7% was sold. The market started off under pressure but recovered somewhat towards the end of the auction to close 0,5% (81 points) down at a value of R174,63/kg for clean wool. The Cape Wools All Wool Indicator closed 0,4% lower and the Australian EMI moved down by 1,8%.
The rand was 2,3% weaker against the US dollar and 1,6% weaker against the euro compared with the average rate at the previous sale. The wool market weakened by 2,7% in US dollar terms.
Overall market performance encouraging
The wool market performed well amidst the current situation in China and the extended Chinese New Year. The smaller offering of 7 275 bales resulted in a one-day sale only, with the market indicator closing slightly down by 0,5%.
The Australian market, which held a two-day sale, started off negatively this week and recovered on the second day, to close the week 1,8% lower.
The major buyers at today’s sale were: Standard Wool SA, Lempriere SA, Modiano 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 0,9% to close at R192,90/kg.
- 18,5 microns moved 0,6% down to close at R183,71/kg.
- 19 microns lost 1,4% to close at R183,16/kg.
- 19,5 microns strengthened by 0,4% to close at R181,64/kg.
- 20 microns was 0,6% stronger to close at R178,41/kg.
- 20,5 microns lost 0,6% to close at R175,35/kg.
- 21 microns lost 0,7% to close at R173,38/kg.
- 21,5 microns tumbled by 1,3% to close at R170,57/kg.
- 22 microns fell 0,7% to close at 172,67/kg.
- 22,5 microns declined by 1,1% to close at R164,78/kg.
The next sale is scheduled for 6 February 2020. – Press release, Cape Wools SA