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According to Cape Wools, the sixth sale of the 2026/27 wool season had 7 911 bales on the floor, consisting mostly of long-length wools testing at 20 microns or finer. The auction achieved an 87% clearance, as the market followed Australia’s overall softer trend. The All-Merino indicator declined by 5,2% to close at R246,16/kg, while the certified indicator decreased by 5% to close at R251,10/kg. Compared to the sixth sale of the previous season, the indicator remained at very good levels despite a stronger rand. Slight shifts in the exchange rate can trigger significant price fluctuations.
The highest price of R379,87/kg clean, equivalent to R280/kg greasy, was paid for a single bale lot of 15-micron Merino wool. Across the micron categories, prices per kg reached R334,83 for 17,5 microns, R307,72 for 18,5 microns, R281,10 for 19,5 microns, R257,06 for 20,5 microns. The major buyers at the sale were BKB Pinnacle Fibres, buying 1 348 bales, Stucken & Co, buying 1 214 bales, and Tianyu SA, buying 1 081 bales.
International influences
“The South African market seems to be following the weaker international trend. However, finer and higher-quality wools are holding up quite well,” said Dawie Kilian of OVK. “Overall, the market is becoming increasingly selective in terms of quality, microns, and clip preparation in the face of limited supply. In fact, the recent Nanjing conference highlighted a decline in wool production across key producing countries such as Australia, New Zealand, and South Africa. This caused fiercer competition for available wool.”
At the same time, Chinese processors faced immense pressure from rising wool costs and limited processing margins, making sustained consumer demand essential to support market stability.
“The immediate future will largely depend on the balance between limited supply of quality wool and demand from processors and consumers. Sustainability and traceability will remain important factors, while the industry’s ability to pass higher wool prices through the supply chain will be crucial to maintaining long-term growth,” Kilian said.
Australia Wool Innovation reported that while growers showed increasing resistance to the lower prices, competition was strong for the best-style and better-specified wools of 19 microns and finer, with Italian and Indian buyers actively targeting these lots. While 18- and 18,5-micron categories held comparatively firm, poorer-style wools, particularly those of 19,5 microns and broader, continued to lose ground. The next sale will take place on 7 October with approximately 7 613 bales on offer. – Roelof Bezuidenhout, Agriorbit
