The first sale of the 2019/20 wool season took place in the first week of September with 8 634 bales on offer of which 81,8% was sold. The wool market was down 28,3% and closed at a value of R147,70/kg for clean wool, with the Cape Wools All Wool Indicator closing 28,3% lower. The Australian EMI moved 27,4% down this week.
This week the rand was 0,6% weaker against the US dollar and 1,3% stronger against the euro, compared with the average rate during the previous sale. The market weakened by 28,8% in US dollar terms.
Up to 39% of offer withdrawn
With the opening of the South African wool market 39% was withdrawn prior to the sale due to uncertainty and a further 18% passed in at auction. The overall market indicator reduced by 28,3%. However, on day one the reduction was 34%.
Fortunately, the Australian wool market increased on Thursday, which led to a slightly better market. There was good competition among the longer, better-styled wool with premiums being paid on RWS accredited wool. Shorter, inferior wool were still heavily discounted.
The shipment of last season’s wool is progressing well, but buyers are still facing financial constraints due to the reduction in the market. Indications are that market sentiment has turned positive and some stability is expected going forward.
The major buyers were Standard Wool SA, Lempriere SA, G Modiano SA and Tianyu SA.
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 23,4% to close at R176,46/kg.
- 18,5 microns moved 30,5% down to close at R160,99/kg.
- 19 microns lost 29,5% to close at R156,97/kg.
- 19,5 microns weakened by 30,2% to close at R151,84/kg.
- 20 microns was 31,2% weaker to close at R149,34/kg.
- 20,5 microns lost 31,1% to close at R147,27/kg.
- 21,0 microns lost 31,7% to close at R148,83/kg.
- 21,5 microns tumbled by 31,5% to close at R148,68/kg.
- 22 microns fell 34,0% to close at 143,43/kg.
- 22,5 microns decreased by 27,8% to close at R156,35/kg.
The next sale is scheduled for 12 September 2019. – Press release