The 16th sale of the 2019/20 wool season recently took place in Port Elizabeth, with 11 570 bales on offer of which 96,5% was sold. The market started off under pressure but recovered somewhat towards the end of the auction to close 1,1% (199 points) down at a value of R175,44/kg for clean wool. The Cape Wools All Wool Indicator closed 1,1% lower and the Australian EMI moved down by 2,1%.
The rand was 0,3% stronger against the US dollar and 0,9% stronger against the euro compared with the average rate at the previous sale. The wool market weakened by 0,8% in US dollar terms.
Overall market performance encouraging
Although most micron categories traded lower, the market performance was encouraging. The majority of the offering consisted of good length fine micron wools, with very few strong wools on offer and an overall sales clearance of 96,49%.
The major buyers were Modiano SA, Standard Wool SA, Lempriere SA and Tianyu 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 microns decreased by 0,4% to close at R191,12/kg.
- 18,5 microns moved down 0,3% to close at R184,75/kg.
- 19 microns lost 0,5% to close at R185,82/kg.
- 19,5 microns weakened by 1% to close at R180,91/kg.
- 20 microns was 1,4% weaker to close at R177,32/kg.
- 20,5 microns lost 1,2% to close at R176,43/kg.
- 21 microns lost 0,4% to close at R174,54/kg.
- 21,5 microns stumbled by 3,5% to close at R172,76/kg.
- 22 microns fell by 2,5% to close at R173,84/kg.
- 22,5 microns declined by 2,2% to close at R166,54/kg.
The next sale is scheduled for 30 January 2020. – Press release, Cape Wools SA