Australian wool prices showed a slight improvement last week from recent five year lows, supported by a steady Australian dollar and renewed European interest, analysts said on Friday.
The AWEX Eastern Market Indicator (EMI) rose three cents to finish the week at 681 cents a kg clean, based on increases of three cents in the northern market (Sydney) and four cents in the southern market (Melbourne).
Their regional indicators were at 686 cents and 677 cents a kg clean by week's end, respectively. The gains marked a mild recovery following sharp falls in the market over the past two weeks, which saw the EMI slide to its lowest since 2000.
"Trade expectations prior to the week's sales beginning were cautious," said Peter Morgan of the Australian Wool Industries Secretariat.
"However, the market stabilised, albeit at last week's lower level, and strengthened as the week progressed with keen competition in the sale rooms yesterday," Morgan said. Support for the market came from a steady Australian dollar, which hovered around 77 US cents for most of the week, and a resumption of buying from Europe.
"Yet, while fresh orders from European mills were very welcome in auction rooms across Australia, the word from many in the trade is there's not necessarily a lot of volume behind them," said woolbroker Landmark.
AWEX said 8.3 percent of the week's 52,483 bales were passed in.
Next week, a larger offering of 61,836 bales is scheduled for sale in Newcastle, Melbourne and Fremantle.