The market report

Reports on the past week's wool sales held in Port Elizabeth, South Africa:

Port Elizabeth – The 13th sale of the 2019/20 wool season took place today with 12 264 bales on offer of which 95,8% was sold.

The wool market closed 0,1% (24 points) down at a value of R169,17 c/kg (Clean), with the Cape Wools All Wool Indicator closing 0,2% lower.

The Australian EMI moved 1,6% down this week.

This week saw the Rand at 0,2% weaker against the US Dollar and 0,5% stronger against the Euro, compared with the average rate at the previous sale.

The market weakened by 0,3% in US Dollar terms. The wool market performed well on the 13th sale of the wool season, ending nearly unchanged to close on R169.17p/kg and a good sales clearance of 95,8%, even though only two buying houses were responsible for 80% of the bales purchased.

Due to the shipping backlog currently experienced and the upcoming Chinese New Year, which may result in deliveries not being able to reach clients by 20 January, the buyers and brokers agreed to postpone the sale scheduled for next week to early January 2020, in order to ensure wool purchased can reach its destination on schedule. The Australian market was also softer this week, with the South African Rand trading at similar levels to last week’s sale.

The good quality fine and medium length merino fleece wool still attracted good competition and traded well above the average market levels of today. The major buyers on today’s sale were: Modiano SA (5 120), Standard Wool SA (4 295), Tianyu SA (831) and Lempriere SA (702). 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 0,1% to close at R182,53/kg; 18,5 microns moved 0,7% up to close at R181,11/kg; 19 microns /gained 0,5% to close at R178,86/kg; 19,5 microns strengthened by 1,7% to close at R177,02/kg; 20 microns was 1,4% stronger to close at R174,33/kg; 20,5 microns lost 1,2% to close at R167,49/kg; 21,0 microns recovered 0,5% to close at R175,41/kg; 21,5 microns improved by 0,3% to close at R171,54/kg; 22 microns fell 1,7% to close at 168,29/kg and 22,5 microns climbed by 0,5% to close at R164,05/kg. The next sale is scheduled for 9 January 2020..

Cape Wools Merino Indicator

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STATISTICS AND REPORTS

Market Reports Reports on the weekly wool sales held in Port Elizabeth, South Africa.

Accumulative Results Accumulative auction results.

Monthly Overview This report highlights monthly changes in the South African wool Industry.

The Story of Wool

South Africa is a vast and beautiful country with a rich history of sheep and wool farming. This long history has established woolgrowers who have a keen appreciation of how to care for their animals and the environment. As a result, the industry consistently generates a high quality, environmentally sound product for international markets.

The first Merino sheep arrived at the Cape in 1789, and the sheep and wool industry on a commercial basis was soon established. During the whole of its colonial period, the Cape province remained the most important wool producing area in Southern Africa and although the sheep industry subsequently spread rapidly throughout virtually the whole of the country, 'Cape Wool' has become the international generic trade term for all wool produced on the sub-continent.

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SA vs AUSINDICATORS

Item	Sale	2019/2020		2018/2019
		SA	EMI	SA	EMI
First Sale	1	14770	1365	23829	2089
This Sale	13	16917	1530	20614	1768
Prev Sale	12	16941	1555	21780	1795
Low		14770	1365	20225	1768
High		18148	1609	25382	2101
Ave		16896	1540	22687	1974

SA vs AUSMICRON PRICES

Micron	Sale	This Week (USc)		Previous Week (USc)
		SA	AU	SA	AU
18	13	1237	1216	1241	1257
18.5	13	1228	1185	1222	1231
19	13	1212	1163	1209	1202
19.5	13	1200	1163	1182	1186
20	13	1182	1156	1167	1171
20.5	13	1135	1160	1151	1172
21	13	1189	1164	1185	1174
21.5	13	1163	1139	1161	1196
22	13	1112	1009	1163	1020

EXCHANGE RATES

Item	Sale	R/USD	R/Euro	R/AUD
2019/2020
First Sale	1	14.8004	16.3545	10.0896
This Sale	13	14.7529	16.2384	9.9840
Prev Sale	12	14.7281	16.3173	10.0168
2018/2019
First Sale	1	14.4856	15.5184	10.4623
This Sale	13	14.3839	16.2321	10.3695
Prev Sale	12	13.9833	16.0445	10.1728

HIGHEST PRICES

Sale	Broker	Producer	Type	Micron	Price
10	BKB	KLEINHEUWEL TRUST	MF280	16.60	16510
11	BKB	VLEIPLAAS TRUST	ML270	16.50	16240
11	BKB	DH CURRIE FARMING TRUST	ML170	16.70	16210
10	BKB	NK BRADFIELD	ML170	16.60	16000

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