Cape Wools Weekly Market Report

Port Elizabeth ‑ The last wool sale before the Christmas recess took place today, with a large offering of 13 791 bales, of which 60% consisted of fine micron merino wools. A large volume of 4 574 bales were withdrawn prior to the sale, with a very good sales clearance of 98,2 % achieved on the bales actually offered.

After a slow start on the first day, the market improved throughout the sale to close 1,6% up to close on R144,33p/kg.

The Australian market also started off in the red on the first day, but experienced better demand on the second day of the sale, to close 1,04% (AU$) down for the week. The rand traded slightly weaker by 0,3% from the previous week, resulting in a 1,29% gain in the market in US$ terms.

All micron categories experienced good competition from the buying houses and ended in positive territory, with the very fine and medium micron, long merino fleece wools attracting the most attention.

Sustainable certified wools comprised 37,5% of the merino wools on offer and continued to outperform the market, especially in the medium micron segment. The major buyers on today's sale were: Lempriere SA (3 698), Modiano SA (3 131), Standard Wool SA (2 398) and Tianyu SA (1 994).

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 2,6% to close at R180,55/kg; 18,5 microns moved 0,8% up to close at R168,36/kg; 19 microns gained 1,1% to close at R158,15/kg; 19,5 microns strengthened by 0,5% to close at R149,17/kg; 20 microns was 1,9% stronger to close at R141,06/kg; 20,5 microns won 0,3% to close at R135,00/kg; 21,0 microns recovered 1,6% to close at R135,66/kg; 21,5 microns improved by 0,8% to close at R133,43kg; 22 microns rose 2,9% to close at R128,39/kg and 22,5 microns climbed by 1,0% to close at R121,79/kg.

The next auction is scheduled for 13 January 2021.