The third wool sale of the 2020/21 season recently took place following the recess in the South African wool auction calendar last week.

A total of 10 152 bales were offered after 638 bales were withdrawn prior to the sale and a further 715 bales during. Growers chose to hold back their wool following negative market sentiment from Australia, with a 1,7% (AU$) and 7,6% (AU$) decrease during two consecutive weeks in the Australian market.

A sales clearance of 82,6% was achieved

A sales clearance of 82,6% of the bales on offer was achieved, with the market shedding 9,9% in rand terms and 7,2% in United States (US) dollar terms. Good competition was evident for the finer, longer-length merino fleeces on offer, which outperformed the market, as well as the sustainable wools, which once again attracted good competition from several buying houses. All other categories experienced price pressure, especially in the medium micron segment of the market, which made up the bulk of the offering.

The major buyers on the sale were Standard Wool SA (2 360), Tianyu SA (1 562), Modiano SA (1 475) and Lempriere (1 437).

Average price per wool 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 6,2% to close at R150,74/kg.
  • 18,5 microns moved 5,4% down to close at R137,06/kg.
  • 19 microns lost 7,8% to close at R129,73/kg.
  • 19,5 microns weakened by 9,4% to close at R122,30/kg.
  • 20 microns was 9,2% weaker to close at R121,06/kg.
  • 20,5 microns lost 8,5% to close at R117,88/kg.
  • 21 microns lost 9,1% to close at R118,10/kg.
  • 21,5 microns tumbled by 8,2% to close at R118,53kg.
  • 22 microns fell 10,5% to close at R112,36/kg.
  • 22,5 microns declined by 12,4% to close at R105,47/kg.

The next auction is scheduled for 9 September 2020 where approximately 7 301 bales will be on sale. Cape Wools SA

View the previous wool sale report here.