Estimated reading time: 3 minutes
According to latest Cape Wools report, the fourth wool sale of the 2026/27 season had 5 247 bales on the floor. Half of these bales consisted of long wool, and the majority tested at 20 microns and finer. The market was unable to maintain its upward momentum, as a further strengthening of the rand against the US dollar added some downward pressure. However, prices remain at very good levels compared to the corresponding auction of the previous season. The auction achieved a lower overall sales clearance rate of 88,1%. The All-Merino indicator shed 1,9% to close at R261,12/kg, while the certified indicator declined by 2,3% to close at R266,61/kg.
The highest price of R355,54/kg clean, equivalent to R278,10/kg greasy, was paid for a two-bale lot of 16 micron Merino wool. According to Leon du Plessis of BKB, the auction didn’t go as everyone hoped, but the market was still 23% better year-on-year. “Fine lots did well but mediums and strong wool, including 19,5 microns, suffered a bit as a result of quiet bidding from some buyers, which is a bit of a mystery at the moment. But the super-fine specialists ensured that the price gap between the fine segment and stronger lots widened. There seems to be something happening there.”
South Africa’s and Australia’s auction performance
Highest prices on the BKB auction included a lot from CH Wagenaar of Jamestown, whose BBFH of 16 microns with a 78% clean yield fetched a greasy price of R78,10/kg. The OVK auction offered 1 887 bales and achieved a clearance rate of nearly 100%. The highest price at the OVK auction was achieved by WPJ Boerdery of Molteno, which fetched R272/kg greasy, equivalent to R339,83/kg clean, for a two-bale lot of BH, which tested 17,4 microns.
Australian Wool Innovation (AWI) reported that the Australian wool market recorded its second consecutive weekly rise, as widespread buyer demand continued to meet a relatively tight supply. AWI noted that fine and superfine wool once again attracted strong competition in the 16,5 to 18,5 micron categories. The year-on-year price comparison showed that the Merino indicator now stands 46,4% higher. The elevated price levels likely kept buyers selective and the market variable.
In Gqeberha, the major buyers were BKB Pinnacle Fibres, which bought 796 bales; Fibre Flow, which bought 775 bales; Stucken & Co, which bought 721 bales; and Standard Wool SA, which bought 692 bales.
The next sale will take place on 15 September, with approximately 6 977 bales on offer. – Roelof Bezuidenhout, Agriorbit
