Mr Weatherly, of Mortlake, said he had never seen prices as high as the $23 a kilogram being paid for the 18-19 micron wool produced by his adult Merino sheep.

Prices hit new records this week for all of the Merino wools and fine crossbred wools as the Eastern Market Indicator (EMI) price average lifted by another 44 cents to 2027c/kg.

This week’s stellar prices build upon a steady rise in wool price in recent times. 

Australian Wool Innovation said wool’s EMI from November, 2017 to January 2018 averaged at $17.28/kg, a record for the past 10 years.

Mr Weatherly said the recent boom in wool prices had come after decades of low profitability, leading to a big drop in the number of merino wool producers.

The past price doldrums prompted many sheep producers to focus on fat lamb production and Mr Weatherly doubted the current price boom would attract many back to again focus on wool production.

While his Connewarran sheep stud had gained one client who had come back to merino wool production from other enterprises, he expected most sheep producers would “wait and see” how long the price boom continued.

The good prices currently being paid for lambs were also likely to mean many sheep producers would continue to focus on that enterprise, he said.

Fox & Lillee brokerage manager Eamon Timms said wool at 21 micron and either side of it were enjoying the biggest price rises but broader micron wools were also sharing in the boom.

The boom was being fuelled by very healthy demand from China and India, Mr Timms said.

He said prices should remain high in the short term because supply in Australia eased off during winter and the South African merino supply was about to go into recess for two months.