The wool market gained last week, with the Australian Wool Exchange Eastern Market Indicator rising 26 cents a kilogram on Tuesday and another 28c/kg on Wednesday.

This meant the indicator closed the week at 1198c/kg, or US892c/kg.

Prices continued to strengthen after the previous week's close due to strong widespread demand helping to push the market higher.

All wool segments had an increase in demand, and the week's pass in rate fell to 5.1 per cent.

This was a substantial decline from the previous week's 10.5 per cent pass in rate.

The national physical wool auction offering fell just short of the expected 38,974 bales, with a total of 38,405 bales going under the hammer.

The increase in auction prices last week provides a hint towards a positive trend leading into a hopeful 2021.

The AuctionsPlus online offer board also had strong growth last week, and a total of 1710 bales sold.

Lines of 16-micron wool sold to a top of 1565c/kg (greasy), or 2115c/kg (clean), and 465 bales of 19-micron wool sold to a top of 1020c/kg (greasy), or 1351c/kg (clean).

The top priced lot was 15.5-micron Merino Fleece AAAM wool, which sold for 1700c/kg (greasy), or 2351c/kg (clean).

It was branded D and N Mulgrave and had 0.6 per cent vegetable matter, a staple length of 74 millimetres and was offered by Australian Wool Network.

Looking ahead, the national auction offering is set to grow to 42,852 for the penultimate sale week this week before the three-week Christmas recess.

The increased confidence in high quality fine and superfine Merino fleece foreshadowed last week's market gains, allowing for a hopeful close to 2020 and a positive start to 2021.