Fears a recent sale of mainly merino hogget wool could meet a reluctant market proved unfounded, with a 95% clearance and a lift in the average auction price.
New Zealand Merino commercial manager Keith Ovens said the Melbourne sale of 2700 bales was surprisingly strong, with four companies which had only recently started buying New Zealand fine wool taking over half the offering.
"There was really keen demand on these finer wools."
There was strong demand for 14 to 16-micron wool but with a significant price distinction based on its length and tenderness.
Oddments were also in demand, which helped push the average price for all wool from $9.50 a kg, the price received at the last sale, to $10.07 a kg, Mr Ovens said.
This was the first time this season the index had broken $10.
Prices across the board were also ahead of those at the same time 12 months ago, when the market collapsed and resulted in 30%-40% of the offering being passed for failing to meet sellers' expectations.
Last week, New Zealand Merino was to sell 2500 bales in Melbourne, its last significant fine wool offering to go to auction this season, Mr Ovens said.