The sixth sale of the 2019/20 wool season took place with 13 776 bales on offer of which 92,9% was sold. The wool market closed 1,3% (222 points) higher than the previous figure at a value of R169,82/kg for clean wool, with the Cape Wools All Wool Indicator closing 1,7% higher. The Australian EMI moved 1% down.
Compared to the previous sale, the rand was 1,2% stronger against the US dollar and 6,4% stronger against the euro. The market improved by 2,6% in US dollar terms.
Wool market increases after decline
The wool market lifted its head after last week’s decline, but was hampered by a strong South African currency, which strengthened by a significant 6,4% against the euro. The large offering of 13 776 bales consisted of good quality length and micron wool. The biggest move in the market was seen in the 20,5 to 23,0 micron wool.
The market followed the upward trend in this week’s Australian sale with much improved competition from all the buying houses, partly attributed to the resumption of business activities after the Chinese holidays. The limited volume of short wool on offer resulted in a far bigger increase in this section of the clip, with certified wool also attracting premiums at today’s sale.
The major buyers at today’s sale were: Lempriere SA, Modiano SA, Standard Wool 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 microns decreased 2,5% to close at R182,97/kg.
- 18,5 microns moved 0,3% up to close at R183,94/kg.
- 19 microns gained 0,1% to close at R181,64/kg.
- 19,5 microns strengthened by 0,6% to close at R179,37/kg.
- 20 microns was 0,8% stronger to close at R174,78/kg.
- 20,5 microns won 0,8% to close at R172,44/kg.
- 21 microns recovered 1,7% to close at R172,31/kg.
- 21,5 microns improved by 1,3% to close at R171,94/kg.
- 22 microns rose 2,2% to close at 172,20/kg.
- 22,5 microns climbed by 1,5% to close at R172,32/kg.
The next sale is scheduled for 17 October 2019. – Press release, Cape Wools SA