The market report

The wool market closed 0,4% (75 points) down at a value of R169,07 c/kg (Clean), with the Cape Wools All Wool Indicator closing 0,5% lower.

The Australian EMI moved 1,7% down this week.

This week saw the Rand at 1,9% stronger against the US Dollar and 5,2% weaker against the Euro, compared with the average rate at the previous sale.

The market improved by 1,4% in US Dollar terms. The wool market managed to remain fairly steady with a slight decrease of ,4% with added downward pressure from the strengthening of the SA currency by 1,9% against the US Dollar.

The market started off on a weaker note on the first day of the sale but managed to regain some of the losses to show improved performance on the second day of the sale.

Good competition amongst the buyers attracted additional competition for the fine long top making style merino fleeces on offer.

The shorter wools on offer attracted good demand due to the limited supplies of these kind of wools and better demand.

The recovery on the second day of the market was due to improved sentiment and upward trend in latter stages of the Australian wool market. It can be seen in the fluctuating price levels of the last couple of sales that there is still a certain degree of uncertainty in the market which is resulting in slight market volatility. The major buyers on today’s sale were: Lempriere SA (3 425), Standard Wool SA (3 292), Modiano SA (2 784) and Tianyu SA (1 084). 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 0,2% to close at R182,54/kg; 18,5 microns moved 2,1% down to close at R180,05/kg; 19 microns lost 2,8% to close at R176,57/kg; 19,5 microns weakened by 2,6% to close at R174,78/kg; 20 microns was 1,5% weaker to close at R172,21/kg; 20,5 microns lost 1,6% to close at R169,64/kg; 21,0 microns lost 1,6% to close at R169,60/kg; 21,5 microns tumbled by 0,8% to close at R170,63/kg; 22 microns fell -0,8% to close at 170,84/kg and 22,5 microns declined by 1,3% to close at R170,12/kg. The next sale is scheduled for 24 October 2019 where approximately ± 10 415 bales will be on sale..