Michell Wool chief executive officer, Steven Read said ultimately the current market was a reflection of what was occurring in China.

He cited the country's energy problems and the fact some processing factories were running for four days on and two days off.

Beijing has ordered China's coal mines to increase output due to shortages across the country.

Despite some increases for prices in cross bred fleece last week Mr Read cautioned that this category was experiencing what could be described as a 10-year low in the market overall.

However, he said there was more potential in the long term for an upside in the market rather than a downside.

After the week of selling the Australian Wool Exchange, Eastern Market Indicator (EMI) closed on 1369c.

Moses and Son principal Marty Moses said the clearance rate for 34,498 bales was 94.3 per cent.

He explained that the increase in the Foreign Exchange AUD/USD from 1.49 to 74.86 USc pushed the EMI up 54c in USD.

Mr Moses said cross bred fleece rice rises increased by 5c to 20c.

He said the next offering consisted of 45,755 bales at Sydney, Melbourne and Fremantle.

"Unfortunately the early market intelligence looks like there is an imminent fall in price for the Merino fleece sector by 20-30c," he said.