Cape Wools Weekly Market Report

Port Elizabeth – After a recess in the 2020/21 wool sales last week, the 33rd sale of the season took place this week, with a total of 10 844 bales on offer, after 595 bales were withdrawn prior to the sale. An overall sales clearance of 93,95% was achieved.

The market delivered a very good performance, whilst the SA Rand traded 2% stronger against the US$. The market gained 1,7% from the previous sale to close on R160,22 p/kg and traded a significant 3,8% higher in US$ terms.

Better all-round market sentiment resulted in a rise in prices in all micron categories. There was good competition from the buying houses, especially for the finer micron merino wools and certified sustainable wools, with both these categories outperforming the market.

The Australian market also traded positively this week and closed 1,7% (AU$) up from the previous sale on Thursday, 27 May.

The major buyers on todays sale were: Standard Wool SA (2 694), Modiano SA (2 421), Lempriere SA (2 297) and Tianyu SA (1 411).

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 3,5% to close at R216,30/kg; 18,5 microns moved 3,2% up to close at R203,61/kg; 19 microns gained 2,2% to close at R187,89/kg; 19,5 microns strengthened by 2,6% to close at R171,20/kg; 20 microns was 1,0% stronger to close at R155,01/kg; 20,5 microns won 1,3% to close at R148,77/kg; 21,0 microns recovered 1,3% to close at R145,64/kg; 21,5 microns improved by 1,4% to close at R142,65kg; 22 microns rose 0,7% to close at R137,13/kg and 22,5 microns climbed by 1,2% to close at R129,58/kg.

The next auction is scheduled for 9 June 2021 where approximately ± 12 187 bales will be on sale.