The 2020/21 wool season continued this week with another large offering of 12 874 bales. The wool market retracted by 1% from the previous sale, to close at R144,07/kg and a sales clearance of 91,03%.

Although nearly 70% of the offering tested 20 microns and finer, only 50% of the offering consisted of Merino wools. The auction began sluggish on the first day, with the market experiencing improved competition on the second day of the auction.

Lees dit in Afrikaans.

The market once again had to contend with the pressure of a stronger South African currency, with the rand trading 1,3% stronger against the United States (US) dollar and delivering a 0,23% return in US dollar terms.

The Australian market weakened by 2,6% this week with a low sales clearance, as sellers decided to hold back their wool at the lower price levels.

Fine, long Merino fleece wools attracted better competition from the buying houses. The wools certified to be sustainable, which made up 33% of Merino wools on offer, once again outperformed the market.

The major buyers on the sale were Lempriere SA, Standard Wool SA, 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 microns decreased 2,5% to close at R176,74/kg.
  • 18,5 microns moved 2% down to close at R165,80/kg.
  • 19 microns lost 1,2% to close at R155,98/kg.
  • 19,5 microns weakened by 1,4% to close at R149,83/kg.
  • 20 microns was 1,9% weaker to close at R141,63/kg.
  • 20,5 microns lost 1,3% to close at R138,13/kg.
  • 21 microns lost 1,4% to close at R135,68/kg.
  • 21,5 microns tumbled by 2,9% to close at R129,62kg.
  • 22 microns fell 0,1% to close at R124,39/kg.
  • 22,5 microns declined by 0,2% to close at R120,78/kg.

The next auction is scheduled for 25 November 2020 where approximately 14 745 bales will be on sale. – Cape Wools SA