WOOL prices recorded their sharpest rises in more than six months last week.
And it wasn't a "one week wonder", according to Michael Avery, the head of Queensland Cotton's wool division which bought 2540 bales or 6.3 per cent of the 40,163 bale clearances.
The AWEX Eastern Market Indicator rose 50c/kg, or 4 per cent, to 1243c/kg clean on a weekly offering of 41,700 bales. Pass-in rate was a relatively low 6.4 per cent.
But while the 1243c/kg close was exactly the same as 12 months ago, in US dollars the market was 7 per cent higher at US1339c/kg clean.
Exporters were surprised by the strength of the market considering that the Australian dollar rose to US108c.
But Mr Avery said the Chinese processors were now coming to terms with supply concerns and a tight pipeline.
"After what was a false dawn in the January sales and after coming back from their New Year celebrations the Chinese realise they have to buy," he said.
"Despite things being quiet in Europe, the processors realised they had to get back to business."
Mr Avery said indications were that exporters were buying last week for immediate delivery.
"Because of the tight supplies, exporters no longer have the comfort of delaying their purchases," he said.
Based on the strong close last week, Mr Avery was confident about this week's sales.
Last week's rises were strong across all microns and wool categories.
Prices for many of the middle-micron wools were within 5 per cent of last year's peaks. The southern 23-micron, which closed at 1341c/kg, had passed its June peak of 1339c/kg.
The superfines - 17 and 18 micron - made strong gains, although were still 28 per cent under the 2011 peaks.
Vittera was the major buyer with 7100 bales or 17.6 per cent of the clearance.
However Dalgety Wool, a relative newcomer to the buying ranks, was third in the buying lists with 2956 bales.
Dalgety Wool, which is Landmark's exporting arm, took over many of the staff and much of the business of the former Elders Wool International business in October.
