Wool market increases after slight decline

©Jane White via 1233RF

Compared to the previous sale, the rand was 1,2% stronger against the US dollar and 6,4% stronger against the euro. The market improved by 2,6% in US dollar terms.

Wool market increases after decline

The wool market lifted its head after last week’s decline, but was hampered by a strong South African currency, which strengthened by a significant 6,4% against the euro. The large offering of 13,776 bales consisted of good quality length and micron wool. The biggest move in the market was seen in the 20,5 to 23,0-micron wool.

The market followed the upward trend in this week’s Australian sale with much-improved competition from all the buying houses, partly attributed to the resumption of business activities after the Chinese holidays. The limited volume of short wool on offer resulted in a far bigger increase in this section of the clip, with certified wool also attracting premiums at today’s sale.

The major buyers at today’s sale were: Lempriere SA, Modiano SA, Standard Wool SA and Tianyu SA.

Average price per category

The average clean prices for the selection within the different micron categories for good top-making (MF5), long fleeces were as follows:

• 18 microns decreased 2,5% to close at R182,97/kg.
• 18,5 microns moved 0,3% up to close at R183,94/kg.
• 19 microns gained 0,1% to close at R181,64/kg.
• 19,5 microns strengthened by 0,6% to close at R179,37/kg.
• 20 microns was 0,8% stronger to close at R174,78/kg.
• 20,5 microns won 0,8% to close at R172,44/kg.
• 21 microns recovered 1,7% to close at R172,31/kg.
• 21,5 microns improved by 1,3% to close at R171,94/kg.
• 22 microns rose 2,2% to close at 172,20/kg.
• 22,5 microns climbed by 1,5% to close at R172,32/kg.

The next sale is scheduled for 17 October 2019.