WOOL prices recorded their strongest rally in two years with the Eastern Market Indicator ending last week at 926c/kg clean, up 47c/kg or 5.4 per cent on its pre-Christmas price.
The gains were across all types. In Melbourne, the superfines - which for more than 18 months have struggled relative to the middle-micron sector - recorded gains of more than 60c/kg clean.
John Roberts, head of the exporter Elders Wool International, said the lift in the market was a real boost to Chinese processors holding stocks of top and yarn.
"From what we are hearing they (the Chinese) are tickled pink," Mr Roberts said.
He said the lift in the greasy wool market provided an opportunity for Chinese topmakers to off-load stock and raise much-needed cash.
Mr Roberts said another positive were the reports of Italian processors and manufacturers lifting their inquiry for superfine wool.
"These wools are the flagship of the Australian wool industry.
"They are not as sensitive to price points as what garments made from middle-micron wools might be," Mr Roberts said.
It was a sentiment echoed by the head of wool trading at Fox & Lillie, Matthew Hand.
Mr Hand said strong demand for the superfines was always a reflection of a healthy wool market.
He said last week's rises were not unexpected given the supply concerns.
Fox and Lillie's joint venture processing plant in China was also receiving strong inquiry for its "open top" used in the knitwear or woollen sector, Mr Hand said.
The clearance of last week's national offering of 46,004 bales was a strong 96.7 per cent.
The online trader Wooltrade also recorded strong sales with 1300 bales over the normally quiet Christmas break and another 3200 bales last week.
Wool sales continue this week with a national three-day offering of 55,600 bales.
