The 11th sale of the 2019-20 wool season held on 14 November saw 11,449 bales on offer, of which, 95.9% was sold. The wool market could reverse the previous week’s fall and closed 1% (174 points) up at a value of R174.64 a kg clean, with the Cape Wools All Wool Indicator closing 2.5% higher.
This week saw the Rand at 0.7% weaker against the US Dollar and unchanged against the Euro, compared with the average rate at the previous sale. The market improved by 0.3% in US Dollar terms.
The wool auction showed an upward trend which was achieved despite buyers having to contend with a strengthening currency on the day two of the sale. Fine merino fleeces were in good demand, with nearly 96% of the total offering sold. Short wools made up a very small percentage of the offering but showed good demand in the stronger micron categories.
The Australian market also provided a positive direction for the South African wool auction, with prices easing off slightly on the day two of the sale, in line with Australia and currency constraints. Good competition amongst buying houses secured above average prices for certain microns certified wools. The major buyers on today’s sale were: Modiano SA (3,795), Standard Wool SA (3,142), Tianyu SA (2,373) and Stucken & Co (652)
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 0.5% to close at R191.67 a kg; 18.5 microns moved 1.4% up to close at R187.33 a kg; 19 microns gained 3.3% to close at R184.19 a kg; 19.5 microns strengthened by 1.7% to close at R180.28 a kg; 20 microns was 1.9% stronger to close at R176.71 a kg; 20.5 microns won 2.2% to close at R174.60 a kg; 21 microns recovered 1.4% to close at R177.23 a kg; 21.5 microns improved by 0.8% to close at R177.04 a kg; 22 microns rose 3.6% to close at 174.50 a kg and 22.5 microns climbed by 0.2% to close at R173.30 a kg.
The next sale is scheduled for 21 November 2019 where 13,223 bales will be on sale.
Source: Cape Wools
