South Africa Wool Market Report

MARKET ANALYSIS

Prices of 18.7 micron and finer once again enjoyed good competition resulting in a 5.5% increase, while 19-20 microns were unchanged, and 21 micron and coarser sold slightly easier compared to the previous week.

Competition was good with greasy exporters still dominating the market, with Standard Wool buying 44% of the CMW offering.

The highest price of R97.50 on today’s sale was achieved by Faskally Farms from Barkly East for a 16.5 micron AFFH CapeMerino bale, which was purchased by New England Wool.
This is also a national record for the 2010/11 season this far.

FORECAST:

The lower than expected wool receipts in Australia has risen concerns with Chinese processors to start buying before the inflated demand causes prices to soar even more. The increase of cotton prices, (70%), should contribute to support these wool price levels and encourage demand. It is also encouraging to note that European processors have returned to the superfine market with10% less wool being exported from Australia to China, rather seeking other destinations.

The next sale will be held on 24 November with approximately9,000 bales on offer.