Cape Wools Weekly Market Report

Port Elizabeth – The 12th sale of the 2020/21 wool season took place this week, with an offering of 8 163 bales and an overall sales clearance of 96,2%. The market delivered a strong performance this week and increased by 7,9%, to close on R157,17 p/kg. This was achieved despite the stronger SA currency, which traded 1,1% stronger against the US$ and the market returning a 9,13 % increase in US$ terms.

Australia’s first sale day of the week also delivered a good performance, with a 7.5% (AU$) rise in the market, with the auction set to continue tomorrow, following on the regional public holiday yesterday in Australia.

There was better market sentiment and strong competition for the fine merino fleece wools on offer, with nearly 70% of the offering testing 20 micron and finer. There was even stronger competition for the sustainable certified wools on offer, which made up 28.4% of the merino wools on offer and 18.6% of all wool sold on the auction.

The major buyers on today’s sale were: Modiano SA (2 128), Lempriere SA (1 895), Standard Wool SA (1 202) and Stucken & Co (1 077).

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 5,7% to close at R193,53/kg; 18,5 microns moved 6,8% up to close at R182,11/kg; 19 microns gained 6,6% to close at R170,76/kg; 19,5 microns strengthened by 8,7% to close at R161,50/kg; 20 microns was 8,8% stronger to close at R154,02/kg; 20,5 microns won 9,7% to close at R149,32/kg; 21,0 microns recovered 10,9% to close at R150,44/kg; 21,5 microns improved by 6,8% to close at R142,87kg; 22 microns rose 4,6% to close at R137,43/kg and 22,5 microns climbed by 4,6% to close at R141,40/kg.

The next auction is scheduled for 11 November 2020 where approximately ± 11 020 bales will be on sale.