The wool season continued this week with a larger offering of 10 099 bales and a good overall sales clearance of 95,5%. The wool market retracted by 2,2% to close at R145,60/kg. The currency traded at stronger levels for most of the sale and only weakened on the second day. The rand finally closed 0,5% stronger against the United States (US) dollar, resulting in a 1,6% decline in US dollar terms.
The Australian wool market declined by 6,6% this week amid an offering that was larger than usual. However, the market struggled to absorb it, resulting in a lower sales clearance.
Most of the offering consisted of good-length, fine-micron Merino wool, which experienced active competition from all buying houses. Conversely, the broader micron categories suffered the biggest losses. Wools certified to be sustainable made up 22% of the offering sold and once again outperformed the wool market.
The major buyers on the sale were Modiano SA, Lempriere SA, Standard Wool SA and Stucken & Co.
Average price per micron 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 1,4% to close at R183,12/kg.
- 18,5 microns moved 1,3% down to close at R170,56/kg.
- 19 microns lost 0,9% to close at R160,17/kg.
- 19,5 microns weakened by 2,1% to close at R148,62/kg.
- 20 microns was 2,3% weaker to close at R141,61/kg.
- 20,5 microns lost 2% to close at R136,13/kg.
- 21 microns lost 1,5% to close at R135,62/kg.
- 21,5 microns tumbled by 1,8% to close at R133,80kg.
- 22 microns fell 2,9% to close at R131,34/kg.
- 22,5 microns declined by 2,5% to close at R135,22/kg.
The next auction is scheduled for 4 November 2020 where approximately 7 378 bales will be on sale. – Cape Wools SA
View the previous wool sale results here.