WOOL prices may have eased last week, but the good news is that they rose in US dollars.
The Eastern Market Indicator fell 5c/kg to 899c/kg clean, but in US dollar terms lifted 16c/kg to US774c/kg clean.
Although EMI continues to hover around the 900c/kg mark, the one consolation for those with a historic perspective is that the indicator is 16 per cent, or 120c/kg, higher than this time last year.
But Elders Wool International manager John Roberts is cautious about any rise in the next few months.
Mr Roberts said the positives in the market were the tight supplies of greasy wool and the looming three-week auction recess.
But he said many Chinese processors were still having trouble moving stocks of yarn and top.
Mr Roberts said processors holding stocks liked to see a price lift in US dollars, as it improved the value of their stocks.
He said one of the brightest segments was the strong demand from Chinese processors for knitwear-type wools.
"We are seeing that in the orders for the short prematurely-shorn wools - up to 65mm," he said.
Most of last week's falls were for the superfine types.
Mr Roberts said Italian processors, although showing increased interest, were still able to "pick and choose" with little competition from Asian processors for wools at the finer end.
Wool sales continue this week, with 26,600 bales rostered for Sydney and Melbourne, while next week's sales of 32,000 bales will be conducted on Tuesday and Wednesday.
Of particular note for next week is that AWEX will conduct the last of its southern region sales at the Victorian Wool Centre.
The southern region auctions, which moved to the VWC from the Wool Exchange in Little Collins St in 1993, will now be conducted in the Australian Wool Handlers auction rooms at Frederick Street, Brooklyn.
