The thirteenth sale of the 2019/20 wool season took place recently. Of the 12 264 bales on offer 95,8% was sold. The wool market closed 0,1% (-24 points) down at a value of R169,17/kg for clean wool with the Cape Wools All Wool Indicator closing 0,2% lower. The Australian EMI moved down by 1,6% this week.
This week saw the rand at 0,2% weaker against the US dollar and 0,5% stronger against the euro, compared with the average rate at the previous sale. The market weakened by 0,3% in US dollar terms.
Wool market performing well
Two buying houses were responsible for 80% of the bales purchased at the auction. Due to the current shipping backlog and the upcoming Chinese New Year, which may result in deliveries not being able to reach clients by 20 January, the buyers and brokers agreed to postpone the sale scheduled for next week to early January 2020 to ensure that purchases reach their destination on time.
The Australian market was also softer this week, with the South African rand trading at similar levels to last week’s sale. The good-quality fine- and medium-length Merino fleece wool still attracted good competition and traded well above the average market levels.
The major buyers on the recent sale were Modiano SA, Standard Wool SA, Tianyu SA and Lempriere 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 0,1% to close at R182,53/kg.
- 18,5 microns moved 0,7% up to close at R181,11/kg.
- 9 microns /gained 0,5% to close at R178,86/kg.
- 19,5 microns strengthened by 1,7% to close at R177,02/kg.
- 20 microns was 1,4% stronger to close at R174,33/kg.
- 20,5 microns lost 1,2% to close at R167,49/kg.
- 21,0 microns recovered 0,5% to close at R175,41/kg.
- 21,5 microns improved by 0,3% to close at R171,54/kg.
- 22 microns fell 1,7% to close at 168,29/kg.
- 22,5 microns climbed by 0,5% to close at R164,05/kg.
The next sale is scheduled for 9 January 2020. – Press release, Cape Wools SA