The 18th sale of the 2019/20 wool season recently took place in Port Elizabeth, with 6 579 bales on offer of which 94% was sold. The wool market closed 1,6% (278 points) up at a value of R177,41 c/kg for clean wool, with the Cape Wools All Wool Indicator closing 1,6% higher. The Australian EMI moved up 1,9% this week.
This week saw the rand at 0,8% weaker against the US dollar and 0,6% weaker against the euro, compared with the average rate at the previous sale. The market improved by 0,8% in US dollar terms.
Improved market sentiment
The South African wool market had a strong performance on this week’s sale, with a smaller offering of 6 579 bales, which consisted of some good-quality fine micron wools. This edged the market higher to close 1,6% up on R177,41p/kg with a good sales clearance of 94%.
Although some buying houses are still affected by the Chinese New Year shut down and uncertain trade conditions, improved market sentiment allowed good competition on the better-quality wools, which performed much better than the market average on the day.
The Australian market also closed 1,9% up this week, which paved the way for a positive market, supported by a weaker rand.
The major buyers on today’s sale were Standard Wool SA, Modiano SA, Lempriere SA and Stucken & Co.
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 increased 1,0% to close at R194,86/kg.
- 18,5 microns moved 3,6% up to close at R190,30/kg.
- 19 microns gained 1,9% to close at R186,56/kg.
- 19,5 microns strengthened by 2,0% to close at R185,25/kg.
- 20 microns was 0,5% stronger to close at R179,32/kg.
- 20,5 microns won 1,7% to close at R178,39/kg.
- 21,0 microns recovered 0,6% to close at R174,38/kg.
- 21,5 microns improved by 1,1% to close at R172,52/kg.
- 22 microns rose 4,2% to close at 179,94/kg.
- 22,5 microns climbed by 2,5% to close at R168,83/kg.
The next sale is scheduled for 13 February 2020 where approximately 4 245 bales will be on sale. – Press release, Cape Wools SA