The wool trade was strong at last week's auctions in Bradford, England, where the benchmark is set for wool prices for Irish farmers.
With a 98pc clearance of 1.4m tonnes, prices crept up to 190p/kg.
On the back of this, Irish merchants have adjusted their price to €1.30-1.50/kg.
In Waterford, Paul Lannen and Son is quoting €1.30-1.40/kg for high-quality samples that are well presented. Connacht Gold Co-op is giving €1.50/kg, while its Ballinasloe-based neighbour, John Murray, is offering at least €1.40/kg. Gort-based Coleman Keane is among the market leaders offering €1.50/kg.
The biggest driver of prices has been the continued decline in global sheep numbers. The Irish flock is half of what it was less than 10 years ago. This, coupled with bigger demand from the Chinese market for fine wool, has continued to underpin prices.
But wool merchants have been sounding a word of caution, with some convinced that the market has peaked.