The ninth sale of the 2019/20 wool season took place recently. Of the 9 767 bales on offer, 97,6% was sold. The wool market closed 6,8% (1 161 points) up at a value of R181,48 per kilogram for clean wool, with the Cape Wools All Wool Indicator closing 6,8% higher. The Australian EMI moved up 3,2% this week.
Compared to the previous sale, the rand was 3,3% weaker against the US dollar and 3,6% weaker against the euro. The market improved by 3,4% in US dollar terms.
Market remains steady
The new wool season is now well underway, with shipment cycles returning to normal and volumes remaining fairly stable despite the continuing drought in large areas of the Cape. Although the wool market started off subdued, it showed strong results overall, ending 6,8% higher on the back of good competition, a much weaker rand and stable market signals from the Australian market.
The biggest gain was seen in long and medium length top-making and spinning Merino wools, with buyers competing actively for these, as well as for the certified wools on offer. The short wools experienced mixed results, with the overall sales clearance at 97,6%, confirming better competition among the buyers for the longer wools on offer.
The major buyers at the sale were Modiano SA, Standard Wool SA, Lempriere 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 4% to close at R194,28/kg.
- 18,5 microns moved up 5,1% to close at R193,74/kg.
- 19 microns gained 5,9% to close at R190,11/kg.
- 19,5 microns strengthened by 6,2% to close at R186,75/kg.
- 20 microns was 4,5% stronger to close at R181,43/kg.
- 20,5 microns won 4,9% to close at R179,46/kg.
- 21 microns recovered 4,8% to close at R179,38/kg.
- 21,5 microns improved by 7% to close at R179,80/kg.
- 22 microns rose by 3,9% to close at R172,58/kg.
- 22,5 microns climbed by 7% to close at R175,79/kg.
The next sale is scheduled for 7 November 2019. – Press release, Cape Wools SA