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Australian wool prices made small gains this week, supported by firm buyer interest in medium to broad wools, analysts said on Friday. The AWEX Eastern Market Indicator (EMI) rose two cents to finish the week at 707 cents a kg clean, based on a fall of two cents in the northern market (Sydney) and a rise of six cents in the southern market (Melbourne).
Their regional indicators ended the week at 720 cents a kg clean and 696 cents a kg clean, respectively.
There were no sales in Fremantle this week.
The market softened at Wednesday sales, before improving on Thursday, buoyed by steady demand for broad wool at Melbourne sales.
"The week saw the finer microns generally under the pressure seen over recent weeks, while broader wools were strongly supported, experiencing gains of 10 to 24 cents in the 21 to 24 micron range," said Peter Morgan of the Australian Wool Industries Secretariat.
"While there has been concern over the impact of a strong Australian dollar against the US dollar, because of its impact on purchases for China, the increase in strength of the Australian dollar against the euro, which is now at a five-year high, will influence prices received for wool going to Europe," Morgan said.

Copyright Reuters, 2005

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