Fed: Wool climbs back to 951 cents kg mark

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Fed: Wool climbs back to 951 cents kg mark

CANBERRA, April 19 AAP - Wool prices have staged a sharp comeback after several weeksof gradual easing.

Prices climbed 27 cents to 951 cents a kilogram this week, a rise of almost three per cent.

There were good rises across all micron ranges, with the 22 micron range lifting 54cents a kilogram to 1,018 cents at the northern auction.

Wesfarmers Landmark said in its weekly wool analysis there were signs the improvementin prices would continue, due to the fall in supply.

"The increase in prices was mainly due to the smaller offering this week and the anticipationof lower offerings within the next few weeks," it said.

"Physical prices are expected to continue at these levels as supply issues still remaina key factor within the market."

Many farmers rushed wool onto the market last month when prices approached the 1,000cents a kilogram mark.

Wesfarmers warned the improvement in the Australian dollar may be the biggest hurdlefacing farmers in coming weeks.

It said with the dollar hovering around the US54 cents mark, some buyers may shy awayfrom paying top price for Australian wool.

"The higher Australian dollar may limit the continuing price rises," it said.

AAP sw/daw/jnb

KEYWORD: WOOL