The seventh sale of the 2019/20 wool season took place recently. Of the 12 282 bales on offer, 96,8% was sold. The wool market closed 0,4% (75 points) down at a value of R169,07 per kilogram for clean wool, with the Cape Wools All Wool Indicator closing 0,5% lower. The Australian EMI moved down by 1,7%.

Compared to the previous sale, the rand was 1,9% stronger against the US dollar and 5,2% weaker against the euro. The market improved by 1,4% in US dollar terms.

Uncertainty leads to market volatility

The market started off on a weaker note on the first day of the sale, but managed to regain some of the losses to show improved performance on the second day. Good competition among the buyers attracted additional competition for the fine, long, top-making style merino fleeces on offer.

The shorter wools on offer attracted good demand due to limited supply. The recovery on the second day of the market was due to improved sentiment and an upward trend in the latter stages of the Australian wool market.

The fluctuating price levels of the last couple of sales are an indication that there is still a certain degree of uncertainty in the market, resulting in slight market volatility.

The major buyers at the sale were Lempriere SA, Standard Wool SA, Modiano 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 0,2% to close at R182,54/kg.
  • 18,5 microns moved 2,1% down to close at R180,05/kg.
  • 19 microns lost 2,8% to close at R176,57/kg.
  • 19,5 microns weakened by 2,6% to close at R174,78/kg.
  • 20 microns was 1,5% weaker to close at R172,21/kg.
  • 20,5 microns lost 1,6% to close at R169,64/kg.
  • 21 microns lost 1,6% to close at R169,60/kg.
  • 21,5 microns tumbled by 0,8% to close at R170,63/kg.
  • 22 microns fell 0,8% to close at R170,84/kg.
  • 22,5 microns declined by 1,3% to close at R170,12/kg.

The next sale is scheduled for 24 October 2019. – Press release, Cape Wools SA