Wool market likely to improve at least by 5 percent in the eastern market indicator for the 2013-14 period as per the National Australia Bank projection.

The National Australia bank's latest outlook for wool is based on the market's strong performance late last year, the softening of the Australian dollar and an expected drop in wool supplies over the next few months

Head of NAB agribusiness for South and Western Australia, Matt O'Dea says the EMI should average just below 1100 cents per kilogram.

The value of wool exports have been falling since their peak in 2011

However, the second half of 2013, the economies of companies like the US, Japan, the UK and Germany began to recover and some signs of a turnaround in the overall value of the exports was seen, which is extremely encouraging.

However, the dry conditions prevailing around the states is putting a downward pressure on the finer end of the market and undoubtedly processors overseas at the moment are showing indication of not willing to push those prices any higher at this stage.

Elders wool manager Craig Pearsall is of the view that the improvement in the wool market need not lead to a rise in prices for finer wools.