The wool auction in the last week of May 2020 formed the second half of catalogue 27, with 5 637 bales offered in total. The average market indicator was down 1,6% from the previous week’s auction. The wool market closed at a value of R142,72/kg for clean wool. The Australian EMI moved 1,3% up this week.
Compared with the average rate at the previous sale, the rand was 3,7% stronger against the US dollar and 3,4% stronger against the euro. The market improved by 2,2% in US dollar terms.
High demand for quality merino wool
The offering was reduced from the original 7 320 bales, as quite a number of bales were withdrawn during the sale, with an overall sales clearance of 85,5%. There was good demand for the better-quality merino wools, with over 90% clearance in these categories. The majority of the offering was once again medium length wools, with very little short wool on offer.
Although the market came under pressure due to the stronger South African currency, market sentiment was better, following better results in Australia this week, which is also reflected in the positive returns in US dollar terms on the sale.
The major buyers were Standard Wool SA, Lempriere SA, Stucken & Co, and Modiano 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 3,2% to close at R163,50/kg.
- 18,5 microns moved 0,8% up to close at R163,39/kg.
- 19 microns lost 1,1% to close at R154,53/kg.
- 19,5 microns weakened by 4,2% to close at R149,23/kg.
- 20 microns was 4,3% weaker to close at R140,71/kg.
- 20,5 microns lost 2,4% to close at R142,66/kg.
- 21,0 microns lost 3,8% to close at R136,43/kg.
- 21,5 microns tumbled by 5,0% to close at R142,13kg.
- 22 microns rose 2,2% to close at R136,26/kg.
- 22,5 microns declined by 5,4% to close at R133,93/kg. – Market report, Cape Wools SA