Wool market sheds gain from previous week

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The wool market shed some of its gains from last week and eased by 4,2% to close at R162,54/kg.

Lees dit in Afrikaans

A total of 12 816 bales with an overall sales clearance of 95,5% were offered this week. The bulk of the offering consisted of 20 microns and finer wools of medium length, with sustainable wools comprising 23% of the Merino wool offering.

There was good competition for the finer micron and longer length wools, especially the wools certified to be sustainable, which delivered good results. However, the market was ultimately dragged down by weaker performance in the broader micron categories.

The rand traded 1,6% stronger against the American dollar, resulting in a 2,7% decrease in the market in American dollar terms. The Australian market recorded mixed results this week, trading at various levels, but ultimately closing down 0,5% in Australian dollar terms from the last Australian auction held on 28 January.

Average price category in the wool market

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 2,6% to close at R214,42/kg.
  • 18,5 microns moved 3,4% down to close at R194,24/kg.
  • 19 microns lost 2,3% to close at R184,33/kg.
  • 19,5 microns weakened by 3,2% to close at R172,27/kg.
  • 20 microns was 5,8% weaker to close at R158,27/kg.
  • 20,5 microns lost 5,5% to close at R152,28/kg.
  • 21 microns lost 6% to close at R148,86/kg.
  • 21,5 microns tumbled by 6,1% to close at R145,11kg.
  • 22 microns fell 7,4% to close at R136,08/kg.
  • 22,5 microns declined by 2,1% to close at R138,12/kg.

The next auction is scheduled for 10 February 2021, where approximately 7 127 bales will be on sale. – Press release, Cape Wools