The fourth wool sale of the 2019-20 season was held on 2 October with 8,034 bales on offer, of which, 87.7% was sold. The wool market closed 2.7% (471 points) down at a value of R167.60 a kg clean with the Cape Wools All Wool Indicator closing 3.1% lower. The Australian EMI moved 3.2% down this week.
This week saw the Rand at 2% weaker against the US Dollar and 1.8% weaker against the Euro, compared with the average rate at the previous sale. The market weakened by 4.6% in US Dollar terms. The fourth catalogue saw a relatively smaller volume on offer with the sale being concluded in one day. The market followed the downward trend in the Australian market but was assisted by the weaker South African currency, closing down 2.7% on the day. Although the Chinese National Holiday hampered buyer participation on the auction floor, RWS certified wools attracted competition from the buyers.
The offering consisted of good quality length and micron wools, with limited short wools on offer. The stronger short portion of the clip experienced much more price pressure on the day.
The major buyers on today’s sale were: Lempriere SA (2,591), Modiano SA (1,944), Standard Wool SA (1,390), and Stucken & Co (614).
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 decreased 1.4% to close at R187.61 a kg; 18.5 microns moved 1.4% down to close at R183.41 a kg; 19 microns lost 0.5% to close at R181.47 a kg; 19.5 microns weakened by 2.5% to close at R178.34 a kg; 20 microns was 3.1% weaker to close at R173.45 a kg; 20.5 microns lost 2.8% to close at R171.10 a kg; 21.0 microns lost 2.6% to close at R169.37 a kg; 21.5 microns tumbled by 1.1% to close at R169.68 a kg; 22 microns fell 0.1% to close at 168.44 a kg and 22.5 microns declined by 1.5% to close at R169.75 a kg.
The next sale is scheduled for 10 October 2019 where about 15,606 bales will be on sale.
Source: Cape Wools
