The ninth sale of the 2019-20 wool season was held on 31 October with 9,767 bales on offer, of which 97.6% was sold. The wool market closed 6.8% (1161 points) higher at R181.48 a kg clean, with the Cape Wools All Wool Indicator also closing 6.8% higher.

This week saw the rand 3.3% weaker against the US dollar and 3.6% weaker against the euro, compared with the average rate at the previous sale. The market improved by 3.4% in US dollar terms.

The new wool season was apparently well underway, with shipment cycles returning to normal and volumes remaining fairly stable, despite the continuing drought in large areas of the Cape Province. The wool market showed overall strong results, although the market started off subdued, contending with a strong rand against the US dollar and no clear market direction. However, on day two the market rebounded and ended up 6.8% higher on the back of good competition, a much weaker ZAR against the USD and stable market signals from the Australian market.

The biggest gain was seen in the good top makers and spinners’ style long and medium length merino wools, with buyers competing actively for these good qualities, as well as for the certified wools on offer. The short wools experienced mixed results, with the overall sales clearance at 97.6%, confirming better competition among the buyers for the longer wools on offer.

The major buyers were: Modiano SA (3,011), Standard Wool SA (2,412), Lempriere SA (1,879), and Tianyu SA (980).

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 4.0% to close at R194.28 a kg; 18.5 microns moved 5.1% up to close at R193.74 a kg; 19 microns gained 5.9% to close at R190.11 a kg; 19.5 microns strengthened by 6.2% to close at R186.75 a kg; 20 microns was 4.5% stronger to close at R181.43 a kg; 20.5 microns won 4.9% to close at R179.46 a kg; 21.0 microns recovered 4.8% to close at R179.38 a kg; 21.5 microns improved by 7.0% to close at R179.80 a kg; 22 microns rose 3.9% to close at 172.58 a kg; and 22.5 microns climbed by 7.0% to close at R175.79 a kg.

The next sale is scheduled for 7 November 2019 where 12,068 bales will be on sale.

Source: Cape Wools