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

The South African wool market has experienced some challenges due to the drop in Australian wool prices. Despite this, an impressive 96% of the 5,218 bales offered for sale were successfully sold. While the overall 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 pressure on exporters.

John from Cape Koopy and Wool (CMW) noted that competition among exporters of fatty wool is still intense, with Modiano continuing to hold a strong position in the market. The highest CMW price was recently paid by a New England-based company, which purchased 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 accounts for less than 1% of the total supply, the following changes were observed: 19 micron wool fell by 2.2%, settling at 66.54 rand/kg; 19.5 micron dropped by 2.2% to 60.86 rand/kg; 20 micron decreased by 5.7% to 55.87 rand/kg; 20.5 micron declined by 5.3% to 55.62 rand/kg; 21 micron saw a 4.6% drop to 55.67 rand/kg; 21.5 micron fell by 5.1% to 54.96 rand/kg; and 22 micron decreased by 6% to 54.31 rand/kg. These declines highlight the ongoing pressures facing the premium wool segment.