South African Weekly Market Report (23 November 2022)

The 13th sale of the 2022/23 wool season took place this week, with a larger offering of 10 777 bales. The offering consisted of good quality wools, with longer length fine micron wools comprising 60% of the offering and sustainably certified wools making up 48% of the merino wools on offer.

Good participation from the buying houses resulted in a good overall sales clearance of 94%.

The market had an overall good performance, despite having to contend, once again, with a strengthening ZAR against the US$.

It must be noted that the average ZAR/US$ rate on the second day of the sale, where the bulk of the merino wools were offered, averaged at R17,14 against the US$, with further strengthening in the ZAR late during the second day’s trade.

The non-RWS market indicator gained 1,2% to close on R161,43 p/kg and the RWS indicator rose by 0,4% to close on R165,08 p/kg.

The Australian market closed up 2%(AU$) from the last sale, held on Wednesday 16 November, but ended the week nearly unchanged in US$.

The major buyers on today’s sale were: Modiano SA (3 364), BKB Pinnacle Fibres (1 556), Standard Wool SA (1 540) and Tianyu SA (1 383).

The next auction is scheduled for 30 November 2022 where approximately ±15 356 bales will be on sale.

Source: Cape Wool