China lifts ban on South African wool – weekly market report (24 August 2022)

The second sale of the 2022/23 wool season took place on 24 August, with an offering of 6 828 bales. It was a huge relief for the industry that China lifted the greasy wool export ban yesterday and all buying houses immediately participated actively in the auction today.

It will however still take some time for the backlog shipments to be cleared, as shipping vessel availability remains a challenge.

There was once again a significant volume of sustainable wools on offer, with 53% of the merino wools being certified as sustainable, with an overall sales clearance of 94,9%

The better market sentiment and the weaker SA currency resulted in a good market performance today.

The non-RWS market indicator closed 6,8% up on R165,74 p/kg and the RWS indicator gained 7,7% to close on R184,33 p/kg.

The Australian market traded unchanged (AU$) this week, compared to the last sale held on Thursday, 18 August.

The major buyers on today’s sale were: Standard Wool SA (2 097), Lempriere SA (1 395), Stucken & Co (1 101) and Modiano SA (844).

The next auction is scheduled for 31 August 2022 where approximately ±6 153 will be on sale.

Source: Cape Wool SA