Strong demand drives SA Wool market to new Record High

Port Elizabeth – Strong demand and a persistently weak Rand drove wool prices to a record high and the Cape Wools Merino indicator gained 4,7% to close at R140,00/kg (clean). 

This is 25,4% higher compared to the opening sale of this season and up 27,9% compared to the corresponding sale of the previous season. In the Australian market, the indicator increased by 5,0%. The Cape Wools All-Wool Indicator gained 4,6%.

Buyers reported a strong demand for and a shortage of good quality Merino wool on the day and commented on the low levels of the stockholding further along the wool processing pipeline. Seasonal supply concerns also impacted by production showing little evidence of recovery. The weaker Rand played its part in driving market prices to these new record levels.

The Rand on the day traded 1,4% weaker at R12,24 against the US dollar, compared with last

week’s average rate, and weakened 3,7% against the Euro at R13,62. The offering comprised of 6 751 bales, of which 99% was sold. Major traders were Standard Wool SA (3 354), Lempriere SA (1 476) and G Modiano SA (1 466).

The weekly price monitor sample, limited to AWEX type MF5, 70-80mm, VM<=2% wool only, experienced an average price movement as follows: 18 microns were up by 5,4% to close at R149,82/kg, 18,5 microns strengthened by 4,6% to R147,45/kg, 19 microns gained 4,3% to close at R142,30/kg, 19,5 microns rose with 5,6% to close at R142,49/kg, 20 microns gained 7,0% to close at R141,11/kg, 20,5 microns increased with 4,8% to close at R137,91/kg, 21 microns gained 4,4% to close at R136,41/kg, 21,5 microns strengthened by 4,4% to R134,70/kg and 22 microns rose by 10,1% to close at R135,04/kg.

The last sale of the season is scheduled for 10 June where approximately 10 200 bales will be on offer.

SA Wool prices at record high!

Port Elizabeth – Exceptional demand at the recent sale resulted in a new record high in wool prices and the Cape Wools Merino indicator gained 8,5% to close at R132,02/kg (clean). This is 18,3% higher compared to the opening sale of this season and 13,4% higher compared to the corresponding sale of the previous season. In the Australian market, the indicator increased by 7,6%. The Cape Wools All-Wool Indicator gained 10,2%.

Limited supply of long, good quality Merino wool and strong demand from the Chinese and Indian markets drove wool prices to the record high. Local traders noted that some clients

are resisting higher price levels.

The Rand on the day traded 0,8% weaker at R11,94 against the US dollar, compared with last week’s average rate, and weakened 3,3% against the Euro at R13,46. The offering comprised of 8 829 bales, of which 99% was sold. Major traders were Standard Wool SA (2 968), G Modiano SA (2 386) and Lempriere SA (2 270).

The weekly price monitor sample, limited to AWEX type MF5, 70-80mm, VM<=2% wool only, experienced an average price movement as follows: 18

microns were up by 7,5% to close at R140,66/kg, 18,5 microns strengthened by 6,2% to R138,96/kg, 19 microns gained 10,7% to close at R137,94/kg, 19,5 microns rose with 9,0% to close at R134,64/kg, 20 microns gained 8,0% to close at R132,46/kg, 20,5 microns increased with 9,2% to close at R130,37/kg, 21 microns gained 7,9% to close at R130,02/kg, 21,5 microns strengthened by 9,3% to R128,28/kg and 22 microns rose with 5,8% to close at R122,98/kg.

The next sale is scheduled for 27 May where approximately 8 000 bales will be on offer..

Wool Market Increases

Port Elizabeth – The wool market was slightly dearer at this week’s sale and the Cape Wools Merino indicator gained 0,4% to close at R110,54/kg (clean). This is 1.0% down compared to the opening sale of this season and 3,7% down compared to the corresponding sale of the previous season On the Australian market, the indicator decreased by 0,1%. The Cape Wools All-Wool Indicator gained 2,8%.

Local traders commented that this week’s offering was sizable and a fairly decent one, with a very nice selection of long fleece wools on offer. Recent gains may have caused the market to slightly overheat and a correction is expected in the near future.

The Rand on the day traded 2,8% weaker at R11,76 against the US dollar, compared with last week’s average rate, and weakened 0,3% against the Euro at R13,12. 

The offering comprised of 13 743 bales, of which 98% was sold. Most active traders were Lempriere SA (5 020), G Modiano SA (2 910), Standard Wool SA (2 478) and Stucken & Co (1 948).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18,5 microns strengthened by 0,2% to R120,61/kg, 19 microns shed 2,3% to close at R113,15/kg, 19,5 microns declined with 1,6% to close at R107,83/kg, 20 microns gained 1,4% to close at R109,14/kg, 20,5 microns increased with 0,9% to close at R107,29/kg, 21 microns gained 0,9% to close at R107,39/kg, 21,5 microns strengthened by 1,0% to R104,99/kg and 22 microns rose with 2,9% to close at R107,02/kg.

The next sale is scheduled for 11 March where approximately 8 200 bales will come under the hammer. 
(Wool appraiser, Ria van Rooyen at 27 (0) 41 4844301).

Global Wool Week coming up!

The world is gearing up for another global wool week on 5th-12th October. The Prince of Wales’s Campaign for Wool will also introduce the first Canadian Wool Week from September 29 – October 5, in Toronto. (Find the Campaign for Wool link under Interesting Links.)

This campaign now includes representatives from the International Wool and Textile Organization, The British Wool Marketing Board, Australian Wool Innovation, the National Council of New Zealand Wool and runs in 12 countries including, France, Italy, Spain, Netherlands, Germany, Norway, Australia, China, Japan, Korea, the United States and now in Canada under the Prince’s Charities Canada.

Wool weeks are held in countries across the world during the autumn retail season. Featuring leading designers, retailers, celebrities - and lots of sheep - the Wool Weeks give hundreds of thousands of people the opportunity to get up close and personal with wool.

The Campaign for Wool has influenced a new demand for wool on an international scale, and its efforts have seen an outstanding threefold increase in the price farmers receive for their wool.

Open to the public from the 5th to 12th October, the Interiors Wool Collection offers free admission and all items displayed will be on sale at London's Southwark Cathedral during Wool Week.

The Scottish Shetland Wool Week takes place on 4-12 October.

UK 5 – 12th October

Germany 20th – 26th October

China 20th – 26th October

Belgium 21st – 31st October

Japan 27th Oct – 4th November

Netherlands 3rd – 9th November

Sadly no participating news from the South African wool industry at time of publishing.

SA Wool price levels sustained

Port Elizabeth – The wool market maintained its recent gains and the Cape Wools Merino indicator closed the day up by a marginal 0,6% at R114,68/kg (clean). This is 2,7% higher compared to the opening sale of this season and 2,0% up compared to the corresponding sale of the previous season.

Traders commented that the weaker rand had propped up the local market, however in hard currency the market remained subdued due to poorer demand from China. They described this week’s offering as small and of poor quality and expect next week’s selection to be similar.

The rand of the day traded 1,7% weaker at R11,10 against the US dollar, compared with last week’s average rate, and weakened 1,1% against the euro at R14,30. The sale resulted in a 97% clearance of the 7 324 bales on offer. The most active traders were Lempriere SA (2 290), Standard Wool SA (2 029) and G Modiano SA (1 033).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18 microns were down by 0,8% to close at R124,10/kg, 18,5 microns weakened by 1,0% to R122,29/kg, 19 microns shed 0,4% to close at R118,15/kg, 19,5 microns dropped with 0,5% to close at R115,82/kg, 20 microns gained 0,2% to close at R115,32/kg, 20,5 microns increased with 0,4% to close at R114,48/kg, 21 microns gained 0,9% to close at R113,81/kg, 21,5 microns strengthened by 1,5% to R113,81/kg and 22 microns rose with 2,5% to close at R113,64/kg.

Approximately 6 700 bales will be on offer at the next sale scheduled for 1 October.
Ria van Rooyen
Wool Appraiser

Wool Market Dearer

Port Elizabeth – The wool market was firm at this week’s sale and the Cape Wools’ Merino indicator gained 1,5% compared with the previous sale a fortnight ago to close at R113,32/kg (clean). Although this is an increase of 1,5% on the opening sale, prices declined 2,3% compared to the corresponding sale of the previous season.

The dearer wool prices reflected the positive global market sentiment, as was also experienced in the strengthened Australian market where the indicator gained 1,0%. According to traders the increase was prompted by good demand across all sectors of the trade for good quality South African Merino wool.

The rand, at R10,69 was a marginal 0,3% weaker against the US dollar compared with last week’s average rate, and at R14,06 it had gained 0,8% against the euro. It was a fairly large sale with 13 229 bales offered, of which 99% was sold. The most active traders were Standard Wool SA (4 072), Lempriere SA (3 292), Stucken & Co (2 642) and G Modiano SA (1 647).

The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18 microns were up by 3,7% to close at R125,43/kg, 18,5 microns strengthened by 1,3% to R120,95/kg, 19 microns increased 0,5% to close at R118,51/kg, 19,5 microns rose with 1,0% to close at R115,96/kg, 20 microns gained 2,0% to close at R114,33/kg, 20,5 microns increased with 1,6% to close at R112,76/kg, 21 microns gained 1,4% to close at R111,82/kg, 21,5 microns strengthened by 1,9% to R111,80/kg and 22 microns rose with 2,6% to close at R111,80/kg.

The next sale is scheduled for 10 September where approximately 9 800 bales will be on offer.

Wool market performs well. Prices slightly softer

Port Elizabeth – The wool market got off on a good start to the new wool selling season and Cape Wools’ Merino indicator closed the day at R111,63/kg (clean), which is 1,1% down on the closing sale of the previous season. This is an increase of 9,5% on the corresponding sale of the previous season. Similar market conditions prevailed at the Australian market where the indicator dropped with 3,6%. Traders reported hesitancy among Chinese buyers which resulted in prices easing at this week’s sale. On a positive note, good quality fine wools were keenly sought after due to firm demand from Europe, while high mid-break wools were discounted.

The rand at R10,66 traded 0,8% stronger against the dollar compared with last week’s average rate. At R14,17 it had gained 3,2% on average against the euro. The sale resulted in a 98% clearance of the 13 945 bales on offer. Most active traders were Standard Wool SA (4 794), Lempriere SA (2 707), G Modiano SA (2 570) and Stucken & Co (1 872. The average clean prices for the selection within the different categories good top-making (MF5), long fleeces were as follows: 18 microns were up by 1,2% to close at R120,91/kg, 18,5 microns remained unchanged at R119,41/kg, 19 microns shed 0,2% to close at R117,91/kg, 19,5 microns dropped by 2,0% to close at R114,81/kg, 20 microns lost 1,6% to close at R112,08/kg, 20,5 microns decreased with 2,7% to close at R110,93/kg, 21 microns shed 3,0% to close at R110,26/kg, 21,5 microns decreased with 3,1% to close at R109,70/kg and 22 microns lost 3,8 % to close at R108,95/kg. The next sale is scheduled for 3 September. Report from Ria van Rooyen, Wool Appraiser

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