South African wool market this week, the general price cut rate of about 96%

The South African wool market has experienced some pressure due to the drop in Australian wool prices. Despite this, a strong 96% of the 5,218 bales offered for sale were successfully sold. While the wool index remains 5% higher compared to the same period last year, the South African rand has weakened by 4% against the US dollar, adding to the challenges for local producers.

John from Cape Koopy and Wool (CMW) noted that competition among exporters of fatty wool remains intense. Modiano continues to hold a dominant position in the market. The highest price paid by CMW was by the New England company, which acquired 17.7 micron wool at a price close to 61.80 rand per kilogram, reflecting strong demand for high-quality fibers.

Looking at the average price trends for high-quality, high-stress shearing (MF5), which makes up less than 1% of the total wool supply, the data shows a mixed performance across different micron ranges: 19 micron wool fell by 2.2%, reaching 66.54 rand/kg; 19.5 micron dropped 2.2% to 60.86 rand/kg; 20 micron declined by 5.7% to 55.87 rand/kg; 20.5 micron decreased by 5.3% to 55.62 rand/kg; 21 micron saw a 4.6% drop to 55.67 rand/kg; 21.5 micron fell 5.1% to 54.96 rand/kg; and 22 micron dropped 6% to 54.31 rand/kg. These declines highlight the ongoing pressure on premium wool prices despite overall market resilience.