Wool selling season resumes on lower footing

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The wool selling season resumed on 14 April after a two-week recess. The market ended softer by 3,4% from the previous sale, to close at R155,63/kg.

Lees dit in Afrikaans

A total of 12 231 bales was on offer this week after 1 153 bales were withdrawn prior to the sale, with an overall sales clearance of 93,15% of the bales offered. The bulk of the offering consisted of 20-micron and finer wool, with a smaller percentage of long wools on offer.

The market followed a similar trend as the Australian market, which closed at 1,15% (Australian dollar) down from their previous sale on 31 March. The market showed some signs of improvement later during trade, with better competition for the fine-micron Merino fleece wools on offer.

Ultimately, it could not raise the market into positive territory. The stronger South African currency of 2,02% against the United States (US) dollar negatively affected the sale, with the market retracting by 1,4% in US dollar terms.

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 microns decreased by 1,9% to close at R203,88/kg.
  • 18,5 microns moved down by 1,8% to close at R194,96/kg.
  • 19 microns lost 1,3% to close at R184,32/kg.
  • 19,5 microns weakened by 2,6% to close at R170,14/kg.
  • 20 microns was 5,2% weaker to close at R152,12/kg.
  • 20,5 microns lost 5,3% to close at R145,79/kg.
  • 21 microns lost 4,1% to close at R144,74/kg.
  • 21,5 microns tumbled by 5,3% to close at R141,58kg.
  • 22 microns fell 5,3% to close at R138,12/kg.
  • 22,5 microns declined by 0,5% to close at R131,43/kg.

The next auction is scheduled for 21 April 2021, where approximately 8 224 bales will be on sale. – Press release, Cape Wools SA