“We’re seeing a week-on-week 1,5% rise in prices, with all types of wool benefitting, from bellies and lox to crossbreds,” BKB auctioneer Leon du Plessis told Farmer’s Weekly, adding that farmers are now being rewarded for well-prepared clips.
At the same time, he said, processors are very happy with the quality of South Africa’s wool. At the second-last auction of the season, held by Cape Wools in Gqeberha, Eastern Cape, on 2 June, some clips achieved outstanding prices. For example, a bale of 18,3-micron wool achieved R242/kg, a level previously reserved for super-fine wools.
Only 5 137 bales were on offer, of which 60% tested 20 micron and finer, and less than half were of long length.
Cape Wools SA noted that the market was solid, despite the rand being around 2,6% stronger against the US dollar.
An overall sales clearance of 91,82% was achieved, and the all-indicator rose by 1,7% to close at R270,39/kg, with the certified indicator closing 1,4% higher at R276,93/kg.
The highest price of R348,40/kg clean (R242/kg greasy) was paid by Standard Wool for a single bale of 18,2-micron merino wool.
The major buyers were Standard Wool SA (922 bales bought), Tianyu SA (845), Stucken & Co (787), and BKB Pinnacle Fibres (669).
Australian market trends
In Australian dollar terms, the market rose by just under 3,5%, compared with the previous sale.
According to a market report by Australian Wool Innovation, buyers are operating in an environment where securing volume remains a key priority.
In addition, buyer behaviour points to an increasing preference for wool that delivers processing certainty, as processors are willing to pay more for wool offering superior yield, consistency, and manufacturing efficiency.
As raw wool prices rise, the commercial cost of processing risk also increases, further supporting demand for higher-performing lots.
However, Australian wool supply continued to track at low levels, with the latest offering the smallest seen in 12 months.
