Cape Wools Weekly Market Report

Port Elizabeth – The 2020/21 wool season continued today, with another large offering of 12 874 bales. Although nearly 70% of the offering tested 20 microns and finer, only 50 % of the offering consisted of merino wools.

The auction started off sluggish on the first day, with the market experiencing improved competition later on the second day of the auction. The market retracted by 1,0% from the previous sale, to close on R144,07p/kg and a sales clearance of 91,03%.

The market once again had to contend with the pressure of a stronger SA currency, with the rand trading 1,3% stronger against the US$ and delivering a +0,23% return in US$ terms.

The Australian market weakened by 2.6% this week, with a low sales clearance, as sellers decided to hold back their wool at the lower price levels.

Fine long merino fleece wools attracted better competition from the buying houses, with the certified sustainable wools, which made up 33% of merino wools on offer, once again outperforming the market.

The major buyers on today’s sale were: Lempriere SA (4 022), Standard Wool SA (2 775), Modiano SA (2 116) and Tianyu SA (1 500).

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 2,5% to close at R176,74/kg; 18,5 microns moved 2,0% down to close at R165,80/kg; 19 microns lost 1,2% to close at R155,98/kg; 19,5 microns weakened by 1,4% to close at R149,83/kg; 20 microns was 1,9% weaker to close at R141,63/kg; 20,5 microns lost 1,3% to close at R138,13/kg; 21,0 microns lost 1,4% to close at R135,68/kg; 21,5 microns tumbled by 2,9% to close at R129,62kg; 22 microns fell 0,1% to close at R124,39/kg and 22,5 microns declined by 0,2% to close at R120,78/kg.

The next auction is scheduled for 25 November 2020 where approximately ±14 745 bales will be on sale.