SA’s first ever electronic wool sale deemed ‘a success’

A total of 5 382 bales were on offer at the 25th sale of the 2019/2020 wool season, of which 87,9% were sold. The market closed 6,4% (988 points) higher at a value of R165,57/kg (clean).

The rand was 9,8% weaker against the US dollar and 9,5% weaker against the euro, compared with the average rate at the previous sale, which meant the market weakened 3,1% in US dollar terms, according to Cape Wools.

Amidst the current nationwide lockdown to contain the spread of the coronavirus disease (COVID-19), the first ever electronic sale in South Africa was held for the bales already in brokers’ stores that had already been valued and tested. Although the sale was regarded as successful, it was not without teething problems, for example, it took longer than the traditional open-cry selling system.

As the volumes were limited, the sale only consisted of 5 382 bales of mixed-length long and medium wool bales. There was better demand for fine micron categories with some of the stronger micron wools experiencing downward pressure, with hesitancy evident from buyers, Cape Wools said. The major buyers were Lempriere SA (2 528), Standard Wool SA (1 028), Stucken & Co (612), and Modiano SA (499). The largest increase of 13,1% was in the 18-micron segment. The highest price of R152,30/kg on the OVK auction was achieved for a two-bale DL lot of 16,2 microns, from the clip of PWB Uys of Wakkerstroom, which was bought by Modiano.

Although wool sales had resumed under strict conditions, the receiving of wool in brokers’ stores was still prohibited due to the total lockdown, said OVK’s operational manager for fibre, Heinrich Victor.

It was still unclear what the implications of the Level 4 lockdown restrictions would be on the transportation of wool, he said. – Roelof Bezuidenhout