The second sale of the season took place recently as a one-day offering of 7 578 bales. Withdrawals prior to the sale amounted to 1 179 bales, resulting in a sales clearance of 92,21% of bales actually offered, with good aftersales improving the wool sales clearance.
The Australian market saw another 5,9% (AU$) decline this week. In contrast, the South African market performed slightly better, easing by only 4,1%, taking the 1,1% strengthening of the rand against the United States (US) dollar into account, which resulted in a 3,1% decline in US dollar terms.
Competition increases wool sales clearance
The majority of the offering consisted of fine fleece wool, which attracted good competition from the buyers and pushed the overall wool sales clearance up. Crossbred wools, especially those containing higher seed content due to the better rainfall, were discounted.
Merino wool with good style and length outperformed the market, especially the certified sustainable lots, which closed nearly unchanged from last week’s levels. The major buyers on the sale were Standard Wool SA, Lempriere SA, Stucken & Co and Modiano 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 1,7% to close at R160,65/kg.
- 18,5 microns moved 4,8% down to close at R144,89/kg.
- 19 microns lost 4,2% to close at R140,65/kg.
- 19,5 microns weakened by 4,7% to close at R135,06/kg.
- 20 microns was 4,8% weaker to close at R133,34/kg.
- 20,5 microns lost 6,8% to close at R128,80/kg.
- 21 microns lost 4,2% to close at R129,92/kg.
- 21,5 microns tumbled by 6,8% to close at R129,14kg.
- 22 microns fell 9,5% to close at R125,50/kg.
- 22,5 microns declined by 10,3% to close at R120,42/kg.
The next auction is scheduled for 2 September 2020 where approximately 10 191 bales will be on sale. – Cape Wools SA
Click here to view the sales of the previous wool auction.