Wool market increases after slight decline
The sixth sale of the 2019/20 wool season took place with 13,776 bales on offer of which 92,9% was sold. The wool market closed 1,3% (222 points) higher than the previous figure at a value of R169,82/kg for clean wool, with the Cape Wools All Wool Indicator closing 1,7% higher. The Australian EMI moved 1% down.
Compared to the previous sale, the rand was 1,2% stronger against the US dollar and 6,4% stronger against the euro. The market improved by 2,6% in US dollar terms.
Wool market increases after decline
The wool market lifted its head after last week’s decline, but was hampered by a strong South African currency, which strengthened by a significant 6,4% against the euro. The large offering of 13,776 bales consisted of good quality length and micron wool. The biggest move in the market was seen in the 20,5 to 23,0-micron wool.
The market followed the upward trend in this week’s Australian sale with much-improved competition from all the buying houses, partly attributed to the resumption of business activities after the Chinese holidays. The limited volume of short wool on offer resulted in a far bigger increase in this section of the clip, with certified wool also attracting premiums at today’s sale.
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The major buyers at today’s sale were: Lempriere SA, Modiano SA, Standard Wool 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 R182,97/kg.
• 18,5 microns moved 0,3% up to close at R183,94/kg.
• 19 microns gained 0,1% to close at R181,64/kg.
• 19,5 microns strengthened by 0,6% to close at R179,37/kg.
• 20 microns was 0,8% stronger to close at R174,78/kg.
• 20,5 microns won 0,8% to close at R172,44/kg.
• 21 microns recovered 1,7% to close at R172,31/kg.
• 21,5 microns improved by 1,3% to close at R171,94/kg.
• 22 microns rose 2,2% to close at 172,20/kg.
• 22,5 microns climbed by 1,5% to close at R172,32/kg.
The next sale is scheduled for 17 October 2019.