WOOL MARKET HOLDS FIRM

PORT ELIZABETH: The wool market held up well at this weeks sale despite a stronger rand en Cape Wools' Merino indicator closed a marginal 0,6% lower compared with last week at R61,66/kg (clean).This was a particularly stable performance when comparing with a 2,2% appreciation of the rand against the US dollar and a 2.8% appreciation against the euro.

Strong demand from Asia, notably China and India, continues to support the market, while demand from Europe remains sluggish. The sale was marked by keen competition from particularly grease wool exporters and 99% of the 8 115 bales on offer was sold.

Major buyers were Modiano SA (2 589 bales); Standard Wool SA (2 459 bales); Lempriere SA (1 284 bales), and Stucken (1 239 bales).

Average prices for good top-making (MF5), sound, long fleeces (less than 1% seed content) were as follows: 19 microns declined by 1,2% to R69,57/kg; 21 microns were 1,6% cheaper at R61,17/kg; and 22 microns declined by 0,5% to R61,09/kg.

Approximately 7 000 bales will be offered at next week's sale.