The eight sale of the 2019/20 wool season took place recently. Of the 11 418 bales on offer, 95,7% was sold. The wool market closed 0,5% (80 points) up at a value of R169,87 per kilogram for clean wool, with the Cape Wools All Wool Indicator closing 0,5% higher. The Australian EMI moved down by 1,9%.
Compared to the previous sale, the rand was 1,5% stronger against the US dollar and 1,3% stronger against the euro. The market improved by 2,1% in US dollar terms.
Market remains steady
The overall wool market remained steady despite the somewhat downward trend on the first day of the sale, ending marginally higher than the previous sale. Taking into account the slight volatility in the market the past few weeks, the sale’s overall results are very encouraging.
The offering consisted of good quality longer Merino wool, which attracted excellent competition from the buying houses. This resulted in this sector outperforming the market. Shorter wools were under pressure due to a shortage of bales on offer.
The major buyers at the sale were Lempriere SA, Modiano SA, Standard Wool SA and Tianyu SA.
Average price per category
The average clean prices within the different micron categories for good top-making (MF5) long fleeces were as follows:
- 18 microns increased by 2,3% to close at R186,81/kg.
- 18,5 microns moved up 2,4% to close at R184,35/kg.
- 19 microns gained 1,6% to close at R179,45/kg.
- 19,5 microns strengthened by 0,6% to close at R175,82/kg.
- 20 microns was 0,8% stronger to close at R173,59/kg.
- 20,5 microns won 0,8% to close at R171,01/kg.
- 21 microns recovered 0,9% to close at R171,15/kg.
- 21,5 microns fell by 1,5% to close at R168,09/kg.
- 22 microns tumbled 2,8% to close at R166,14/kg.
- 22,5 microns declined by 3,4% to close at R164,28/kg.
The next sale is scheduled for 31 October 2019. – Press release, Cape Wools SA