The trend is upwards and last week the Western Market Indicator (WMI) reached a twelve month high of 881c/kg.

Primaries Wool representative Carl Poingdestre said the wool market had responded remarkably well to external market pressures over the past six months.

"The market was pretty flat between December 2008 through to the end of March 2009 with the WMI getting as low as 694c," he said.

"Although we have had weeks where the market has been cheaper, the trend is up and the WMI finished on a new high for the past 12 months of 881c/kg, up 13c/kg on last week.

"Considering the $A was trading at US64c in Feb this year and we are now at around US91c the market has done exceptionally well."

Mr Poingdestre likened the wool market recovery to the worldwide economic recovery; he believes it would be a long slow process with a few hiccups along the way.

He said supply issues would play a key role in the industry's future.

"As a broker I believe we will sell more wool than we receive this year," he said.

"With low grain prices and a need for cash flow I see our "wool on hold" figure being reduced."

Landmark Western Divisional wool manager Tim Edwards said there had been some encouraging signs that the wool market would steadily improve.

"The wool market is currently trading above the 70 percentile for 20 micron, a position the market has been steadily moving towards for the last six months," he said.

"It's been well documented that the supply of Australian Merino wool is at its lowest level since the early 1900's and this is obviously having a bearing on price."