The wool market traded slightly lower this week, having to contend with a much stronger SA currency, with the average market indicator easing by 0,5%, to close on R151,45p/kg. It was once again a large offering of 14 237 bales, with 4 939 bales withdrawn prior to the sale to achieve manageable auction volumes. A 96,9% sales clearance was achieved on the bales offered.
Strong demand for finer micron Merino
The offering consisted of some good quality Merino wools, with 43% of the Merino wool offered being certified as sustainable. There was strong buyer demand for the finer micron Merino wools and excellent competition for the sustainable wools on offer, which ended positively, but the market was ultimately pulled into negative territory by the broader micron segment.
These results were achieved despite the stronger SA currency of 2,7% against the US$, resulting in a good 2,2% increase in US$ terms. The Australian market opened unchanged on the first sale day, but had a better performance on the second day to close 1,5% (AU$) up this week.
Average price 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 increased 3,0% to close at R196,79/kg.
- 18,5 microns moved 0,1% up to close at R181,38/kg.
- 19 microns gained 0,6% to close at R168,21/kg.
- 19,5 microns weakened by 1,4% to close at R156,18/kg.
- 20 microns was 2,0% weaker to close at R147,40/kg.
- 20,5 microns lost 0,1% to close at R140,21/kg.
- 21,0 microns lost 2,3% to close at R140,14/kg.
- 21,5 microns tumbled by 3,6% to close at R136,46kg.
- 22 microns fell 2,1% to close at R130,91/kg.
- 22,5 microns declined by 3,4% to close at R127,64/kg.
The next auction is scheduled for 27 January 2021. – Press release, Cape Wools SA