The eleventh sale of the 2019/20 wool season took place recently. Of the 11 449 bales on offer, 95,9% was sold. The wool market closed 1% (174 points) up at a value of R174,64 per kilogram for clean wool, with the Cape Wools All Wool Indicator closing 2,5% higher. The Australian EMI moved up by 1,2%.
Compared with the average rate at the previous sale, the rand was 0,7% weaker against the US dollar and unchanged against the euro. The market improved by 0,3% in US dollar terms.
This week’s wool auction showed an upward trend after shedding some gains last week, with an increase of 1%. This was achieved despite buyers having to contend with a strengthening currency on the second day of the sale. Fine Merino fleeces were in good demand, with nearly 96% of the total offering sold. Short wools made up a very small percentage of the offering but showed good demand in the stronger micron categories.
The Australian market provided a positive direction for the South African wool auction, with prices easing slightly on the second day of the sale, in line with Australia and currency constraints. Good competition among buying houses secured above-average prices for certain microns certified wools.
The major buyers were Modiano SA, Standard Wool SA, Tianyu SA and Stucken & Co.
Average price per category
The average clean prices for the different micron categories for good top-making (MF5) long fleeces were as follows:
- 18 microns increased by 0,5% to close at R191,67/kg.
- 18,5 microns moved up by 1,4% to close at R187,33/kg.
- 19 microns gained 3,3% to close at R184,19/kg.
- 19,5 microns strengthened by 1,7% to close at R180,28/kg.
- 20 microns was 1,9% stronger to close at R176,71/kg.
- 20,5 microns won 2,2% to close at R174,60/kg.
- 21 microns recovered 1,4% to close at R177,23/kg.
- 21,5 microns improved by 0,8% to close at R177,04/kg.
- 22 microns rose by 3,6% to close at R174,50/kg.
- 22,5 microns climbed by 0,2% to close at R173,30/kg.
The next sale is scheduled for 21 November 2019. – Press release, Cape Wools SA