The twelfth sale of the 2019/20 wool season took place recently. Of the 13 357 bales on offer, 92,3% was sold. The wool market experienced downward pressure this week, with the market indicator closing 3% lower (-523 points) at a value of R169,41/kg for clean wool and a lower sales clearance of 92,3%. The Cape Wools All Wool Indicator closed 4,4% lower and the Australian EMI moved down by 1,2%.

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

Subdued market conditions

The market kicked off on Wednesday under very subdued market conditions and recovered somewhat on Thursday, although most categories were down from the previous week. Subdued competition was noticeable on the auction floor, although some buyers could still secure their stock supply in the buyers’ favour. The result on the recent sale followed the downward trend in the Australian market, with some recovery also recorded on the second day of their sale and added downward pressure from the stronger rand.

Very little short wools were on offer with quantities too low to do price comparisons. The major buyers were Modiano SA, Standard Wool SA, Lempriere SA and Tianyu 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 decreased by 4,6% to close at R182,78/kg
  • 18,5 microns moved 4,0% down to close at R179,91/kg
  • 19 microns lost 3,3% to close at R178,05/kg
  • 19,5 microns weakened by 3,4% to close at R174,14/kg
  • 20 microns was 2,7% weaker to close at R171,95/kg
  • 20,5 microns lost 2,9% to close at R169,48/kg
  • 21,0 microns lost 1,5% to close at R174,52/kg
  • 21,5 microns tumbled by 3,4% to close at R171,04/kg
  • 22 microns fell 1,9% to close at 171,23/kg
  • 22,5 microns declined by 5,8% to close at R163,30/kg

The next sale is scheduled for 28 November 2019. – Press release, Cape Wools SA