Cape Wools Weekly Market Report

Port Elizabeth – The wool season continued this week, with a larger offering of 10 099 bales and a good overall sales clearance of 95,5%. The market retracted by 2,2% to close on R145,60 p/kg, with the currency trading at stronger levels for most of the sale and only weakening later on the second day. The rand finally closed 0,5% stronger against the US$, resulting in a 1,6% decline in US$ terms in the market.

The Australian market declined by 6,6% this week, amidst a larger than usual offering which the market struggled to absorb, resulting in a lower sales clearance.

The majority of the offering consisted of good length, fine micron merino wools, which experienced active competition from all buying houses, with the broader micron categories suffering the biggest losses. Certified sustainable wools made up 22% of the offering sold and once again outperformed the market.

The major buyers on today’s sale were: Modiano SA (3 011), Lempriere SA (2 085), Standard Wool SA (1 581) and Stucken & Co (1 075).

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 decreased 1,4% to close at R183,12/kg; 18,5 microns moved 1,3% down to close at R170,56/kg; 19 microns lost 0,9% to close at R160,17/kg; 19,5 microns weakened by 2,1% to close at R148,62/kg; 20 microns was 2,3% weaker to close at R141,61/kg; 20,5 microns lost 2,0% to close at R136,13/kg; 21,0 microns lost 1,5% to close at R135,62/kg; 21,5 microns tumbled by 1,8% to close at R133,80kg; 22 microns fell 2,9% to close at R131,34/kg and 22,5 microns declined by 2,5% to close at R135,22/kg.

The next auction is scheduled for 4 November 2020 where approximately ± 7 378 bales will be on sale.