The 10th sale of the 2019-20 South African wool season was held on 6-7 November with 13,541 bales on offer, of which 92% was sold. The wool market was unable to hold onto the gains made last week, closing 4.7% (858 points) down at R172,90 a kg clean, with the Cape Wools All Wool Indicator closing 4.8% lower.
This week, the Rand was 2.2% stronger against the US Dollar and 3% stronger against the Euro, compared with the average rate at the previous sale. Thus, the market weakened 2.5% in US Dollar terms.
The offering consisted of some good quality long merino wool with very little short wools on offer. The market followed the softer trend seen in this week’s Australian auction, with the stronger Rand adding further downward pressure on price levels.
The market showed some improvement on day two of the sale, with better participation from the buying houses. Almost all micron ranges closed softer, except a few categories which included certified wools. Major buyers were: Standard Wool SA (3,978), Modiano SA (2,992), Tianyu SA (2,584), and Lempriere SA (1,318).
The average clean prices for different micron categories for good top-making (MF5), long fleeces were as follows: 18 microns decreased 1.8% to close at R190.77 a kg; 18.5 microns moved 4.7% down to close at R184.66 a kg; 19 microns lost 6.2% to close at R178.28 a kg; 19.5 microns weakened by 5.1% to close at R177.26 a kg; 20 microns were 4.4% weaker to close at R173.45 a kg; 20.5 microns lost 4.8% to close at R170.88 a kg; 21.0 microns lost 2.5% to close at R174.83 a kg; 21.5 microns tumbled by 2.3% to close at R175.69 a kg; 22 microns fell 2.4% to close at 168.37 a kg; and 22.5 microns declined by 1.6% to close at R172.91 a kg.
The next sale is scheduled for 14 November 2019 where 10,540 bales will be on sale.
Source: Cape Wools
