The tenth sale of the 2019/20 wool season took place recently. Of the 13 541 bales on offer, 92% was sold. The wool market closed 4,7% (858 points) down at a value of R172,90/kg for clean wool, with the Cape Wools All Wool Indicator closing 4,8% lower. The Australian EMI moved down 2,5% this week.
Compared to the previous sale, the rand was 2,2% stronger against the US dollar and 3% stronger against the euro. The market improved by 2,5% in US dollar terms.
Market lost its lead of last week
The wool market could not hold onto the gains made during last week’s auction and fell 4,7%. The offering consisted of some good quality, long Merino wool with very little short wool on offer. The market followed the softer trend during this week’s Australian auction, with the stronger rand adding further downward pressure on price levels.
The market showed some improvement on the second day of the sale, with better participation from the buying houses. Almost all micron ranges closed at softer levels, except for a few categories, which included certified wool.
The major buyers at the sale were Standard Wool SA, Modiano SA, Tianyu SA and Lempriere 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 decreased 1,8% to close at R190,77/kg.
- 18,5 microns moved 4,7% down to close at R184,66/kg.
- 19 microns lost 6,2% to close at R178,28/kg.
- 19,5 microns weakened by 5,1% to close at R177,26/kg.
- 20 microns was 4,4% weaker to close at R173,45/kg.
- 20,5 microns lost 4,8% to close at R170,88/kg.
- 21 microns lost 2,5% to close at R174,83/kg.
- 21,5 microns tumbled by 2,3% to close at R175,69/kg.
- 22 microns fell 2,4% to close at R168,37/kg.
- 22,5 microns declined by 1,6% to close at R172,91/kg.
The next sale is scheduled for 14 November 2019. – Press release, Cape Wools SA