The 22nd sale of the 2019/20 wool season recently took place in Port Elizabeth, with 12 562 bales on offer of which 95,2% was sold. The wool market closed 3,1% (325 points) down at a value of R179,09/kg for clean wool. The Australian EMI moved 1,2% down this week.
This week saw the rand at 0,2% weaker against the US dollar and 2,2% weaker against the euro, compared with the average rate at the previous sale. The market weakened by 3,3% in US dollar terms.
Downward pressure amidst market uncertainty
The wool market could not hold on the gains of the last few weeks and shed 3,1% this week to close on R179,09 p/kg.
The lower yields of Merino wools on offer contributed significantly to the lower price levels. The Australian market started on a positive note on Wednesday and turned negative on Thursday to close 1,2% down this week.
The offering consisted of a large volume of fine wools, with these micron categories experiencing the most downward pressure amidst some market uncertainty. Some of the medium-range microns performed better than the market average, especially for certified sustainable lots of good quality.
Standard Wool SA, Modiano SA, Lempriere SA and Stucken & Co were some of the major buyers at the sale.
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 decreased 5,1% to close at R191,15/kg.
- 18,5 microns moved 4,6% down to close at R187,60/kg.
- 19 microns lost 5,1% to close at R184,50/kg.
- 19,5 microns weakened by 2,0% to close at R191,42/kg.
- 20 microns was 3,3% weaker to close at R182,25/kg.
- 20,5 microns lost 1,1% to close at R181,44/kg.
- 21,0 microns lost 2,2% to close at R180,32/kg.
- 21,5 microns tumbled by 1,6% to close at R180,63kg.
- 22 microns fell 1,1% to close at 180,12/kg.
- 22,5 microns declined by 1,2% to close at R175,16/kg.
The next sale is scheduled for 12 March 2020. – Press release, Cape Wools SA