The 2019/20 wool season resumed in Port Elizabeth today, with 12 599 bales on offer of which 96,1% was sold. The wool market closed 4,3% (730 points) up at a value of R176,47 c/kg (Clean), with the Cape Wools All Wool Indicator closing 4,3% higher. The Australian EMI moved 1,8% up this week. This week saw the Rand at 4,1% stronger against the US Dollar and 3,2% stronger against the Euro, compared with the average rate at the previous sale. The market improved by 8,8% in US Dollar terms.

The offering consisted of some good quality wool, with a large volume of wool in the 20,1 to 22 micron category.With no sale taking place in Australia this week, the market took its que from the good results achieved in Australia on the last sale in December, to close 4,3% up from the last sale on R176,47 per kg. This positive result was achieved despite the 4,1% strengthening of the SA Rand against the USD and led to a significant increase of 8,8% in the market in USD terms. 

There was very good competition amongst the buying houses, with some micron categories performing better than the market, as buyers had to secure stock for their orders from limited supply availability. Sustainable certified lots once again attracted good competition with short wools underperforming due to the very small quantity available to the market. The major buyers on today’s sale were: Modiano SA (3 506), Standard Wool SA (3 265), Tianyu SA (2 585) and Lempriere SA (1 739).

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 3,7% to close at R189,24/kg; 18,5 microns moved 2,7% up to close at R186,09/kg; 19 microns gained 2,9% to close at R184,13/kg; 19,5 microns strengthened by 3,5% to close at R183,23/kg; 20 microns was 2,8% stronger to close at R179,22/kg; 20,5 microns won 6,2% to close at R177,88/kg; 21,0 microns recovered 1,2% to close at R177,50/kg; 21,5 microns improved by 1,9% to close at R174,841/kg; 22 microns rose 6,6% to close at 179,41/kg and 22,5 microns climbed by 4,9% to close at R172,05/kg.

The next sale is scheduled for 16 January 2020 where approximately ±11 067 bales will be on sale.