The Australian wool market had small, but consistent gains across all three selling centres this week, lifting the Eastern Market Indicator (EMI) by 26 cents to break through the 1000 cent mark to close on 1022 cents per kilogram.
The EMI has now risen for four out of the last five selling series, gaining a total of 164 cents over this period.
Although price increases were evident across all micron price guides (MPGs), the largest rises were in the finer categories.
Nineteen micron and finer gained between 20 and 55 cents nationally while 19.5 micron and coarser rose by 19 to 35 cents.
And according to the Australian Wool Exchange (AWEX) weekly report, sellers were keen to accept the increased prices on offer, the national passed in rate was only 5.1pc, which was 12.7pc lower than the previous series.
Managing Director of Mecardo Robert Herrmann, said the hope is now that the market holds a more even keel as processors begin to respond to improving downstream and retail demand.
"Producers have shown that they are prepared to hold wool on the explanation of higher prices which will continue to keep supply restrained," Mr Herrmann said.
"Previously in market rally's where growers held wool, the rising markets provide a feeling of vindication, increasing the tendency to resist a quick sale; this strategy will support any demand led price recovery."
Mr Herrmann said it should be noted that the wool market had already commenced a down cycle from the 2018 peak, with the orderly nature of the market in late 2019 disrupted in the new year by the pandemic.
The national offering, compared to last season, continues to fall with this week's total bale count at 29,668 bales, a reduction of 1354.
This year there has been 8030 fewer bales put through the auction system, a reduction of 2.2 per cent.
Mr Herrmann said year to date, the weekly auction clearance has averaged 25,448 bales, 1100 bales less than the average of last season. September was lowest at 22,902 bales per week sold.
"A comparison with previous year's first 10 sales of the new selling season puts 2020 in a similar situation with 2019, but 12,000 bales below the average of the preceding three years," he said.
"For the seven weeks up to the beginning of September, growers passed in 15.4pc of wool offered, while in the recent four-week period of rallying markets only 4.76pc was passed."
According to business and consumer confidence indicators the expectation of this recovery is for a strong rebound.
"This contrasts with the GFC recovery which while exhibiting a slower decline, also exhibited a slower recovery," Mr Herrmann said.
"Wool as a commodity is impacted more to its positioning as a discretionary spend item.
"However, the timing of the recovery both economically and for the wool market is still dependent on the success of the fight against the COVID-19 pandemic."
Next week's national offering increases slightly to 30,468 bales.
Sydney and Melbourne will be in operation over both days, with Sydney a designated Superfine sale while Fremantle only requires one day of selling on the Wednesday.