Speaking after the 27th sale of the season, Du Plessis said the market was benefiting from reduced global availability.
“Wool stocks have been used up and only freshly shorn wool is now available for sale. Demand is starting to outstrip supply, with Australian auctions getting smaller,” he said.
He added that there was a noticeable shift in sentiment compared with previous seasons.
“Compared to a few seasons ago, one can feel a positive energy in the auction hall. Wool is in a good place right now, but should the war in the Middle East continue much longer we can expect rising fuel costs to affect markets.”
Competition was particularly strong in the finer micron categories.
“The competition was particularly good in the 17-micron bracket, especially for selected clips. The gap in price between fine wool and medium wool seems to be widening, with fine wools becoming more expensive,” Du Plessis said.
According to Cape Wools, only 6 109 bales were on offer at the sale. Despite a variable, but stronger rand against the US dollar, the market remained resilient. However, the composition of the offering contributed to a lower sales clearance of 89,2%.
The all-merino indicator increased by 2,9% to close at R252,65/kg, while the certified indicator rose by 3,2% to R258/kg.
A top price of R325,34/kg (clean) and R213/kg (greasy) was achieved for a single bale lot of 16,1-micron merino wool.
This performance follows a rebound in the Australian market, which closed 3,6% higher (in Australian dollar terms) compared with its previous sale.
The main buyers at the sale were G Modiano South Africa (1 358 bales), Standard Wool South Africa (1 327), Tianyu South Africa (768), and BKB Pinnacle Fibres (749).
