Port Elizabeth - The 15th sale of the 2019/20 wool season took place today with 11 329 bales on offer of which 95,3% was sold. The wool market closed 0,5% (96 points) up at a value of R177,43 c/kg (Clean), with the Cape Wools All Wool Indicator closing 0,5% higher. The Australian EMI moved 3,3% up this week. 

This week saw the Rand at 1,6% weaker against the US Dollar and 2,0% weaker against the Euro, compared with the average rate at the previous sale. The market weakened by 1,1% in US Dollar terms. The Australian Market showed strong gains on the first day of their sale, flattened on the second day and weakened on the last day, to close 3.3% higher after the week’s sales. This resulted in the South African market struggling to find clear direction on this week’s sale, but the market managed to hold on to its gains of the previous sale and close 0.5% up on R177.43 p/kg and a sales clearance of 95.3%.The weakening of the SA currency against the USD could not lend additional support to the market.

Competition was not as strong on all micron categories, especially the stronger end of the clip. Buyers did however compete well for the long, finer microns and certified wools on offer, with the medium micron categories experiencing downward pressure. Although positivity surrounds the signing of the first stage of the USA/ China trade deal, any positive spin offs for the SA wool market is not yet evident.

The major buyers on todays sale were: Modiano SA (3 574), Lempriere SA (2 797), Standard Wool SA (2 711) and Tianyu SA (908).

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 1,4% to close at R191,88/kg; 18,5 microns moved 0,4% down to close at R185,39/kg; 19 microns gained 1,4% to close at R186,69/kg; 19,5 microns weakened by 0,3% to close at R182,71/kg; 20 microns was 0,4% stronger to close at R179,87/kg; 20,5 microns won 0,4% to close at R178,61/kg; 21,0 microns lost 1,2% to close at R175,28/kg; 21,5 microns improved by 2,4% to close at 178,97/kg; 22 microns fell 0,6% to close at 178,27/kg and 22,5 microns declined by -1,0% to close at R170,34/kg.

The next sale is scheduled for 23 January 2020 where approximately 10 986 bales will be on sale.