Cape Wools Weekly Market Report

The wool market continued its upward trend on the 7th sale of the 2020/21 wool season with a strong performance on today’s sale, driven by better market sentiment and a weaker SA rand.

After 1 264 bales were withdrawn prior to the sale, 7 713 bales came under the hammer, of which 92% was sold. The market gained 6.2% from the previous sale, with the rand trading 3.3% weaker against the US$, resulting in a 2,7% increase in US$ terms.

The Australian market had a strong performance last week, increasing by 10.3%, before shedding some of the gains this week with a 3.9% drop in the market.

Good quality fine merino wools especially finer than 18.8 microns achieved excellent prices, with sustainable certified wools (RWS) attracting very good competition throughout the auction and achieving good premiums.

The major buyers on today’s sale were: Lempriere SA (2 033), Standard Wool SA (2 022), Stucken & Co (1 232) and Modiano SA (1 122).

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 7,1% to close at R167,50/kg; 18,5 microns moved 7,2% up to close at R152,47/kg; 19 microns gained 6,9% to close at R143,50/kg; 19,5 microns strengthened by 3,6% to close at R133,24/kg; 20 microns was 5,4% stronger to close at R127,08/kg; 20,5 microns won 6,3% to close at R123,48/kg; 21,0 microns recovered 5,1% to close at R121,10/kg; 21,5 microns improved by 3,6% to close at R119,94kg; 22 microns rose 1,7% to close at R120,82/kg and 22,5 microns climbed by 7,3% to close at R123,20/kg.

The next auction is scheduled for 07 October 2020 where approximately ± 6 114 bales will be on sale.