The South African market followed the significant increases recorded in Australia during its second sale of the 2019-20 wool season held on 11 and 12 September. A total of 6,856 bales were on offer, of which 91.5% were sold.
The market closed 10.8% (1590 points) up at a value of R163.60 a kg clean, with the Cape Wools All Wool Indicator also closing 10.8% higher.
The rand was 1.2% stronger against the US dollar and 1.7% stronger against the euro, compared with the average rate at the previous sale. The market improved/weakened by 12.1% in US dollar terms.
Finer end wools were not as affected but wools coarser than 19.5 microns attracted extreme competition. The shorter wools and inferior wools were only marginally up. The sharp rise in wool prices can also partly be attributed to short covering for sales made in recent weeks and smaller than expected offerings of good, high-spec wools. Approximately 15% of wool was withdrawn before the commencement of the auction and everything offered at the auction were declared sold.
The major buyers were: Modiano SA (1,910), Standard Wool SA (1,475), Lempriere SA (1,271) and Stucken & Co (841).
The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows: 18 microns increased 3% to close at R181.76 a kg; 18.5 microns moved 11.2% up to close at R179.07 a kg; 19 microns gained 12% to close at R175.83 a kg; 19.5 microns strengthened by 12.1% to close at R170.28 a kg; 20 microns were 12.2% stronger to close at R167.52 a kg; 20.5 microns won 13.1% to close at R166.64 a kg; 21 microns recovered 11.6% to close at R166.07 a kg; 21.5 microns improved by 12% to close at R166.48 a kg; 22 microns rose 10.7% to close at 158.83 a kg; and 22.5 microns climbed by 10.5% to close at R172.82 a kg.
The next sale is scheduled for 17 September 2019. Approximately 9,258 bales will be on sale.
