Unfortunately though, the EMI is now well below this level at 874c/kg, with threats of more price falls as supply picks up later this year and a weakening global demand.

But the 2007-08 season will be remembered as a good one for wool prices, thanks to the buoyant sales late last year and early this year when supply was low and demand was steady to strong at times.

On average the 21-23 micron wools enjoyed the ride the most, with prices for these wools averaging 40pc above their long-term average.

Finer wools were overall 10-25pc above their average, according to the Callum Downs Commodity newsletter, whilst 25 and 26 micron wools were in all about 10-20pc higher than their long-term average.

According to the Australian Wool Exchange a total of 2.27 million bales of wool were offered last financial year or wool selling season, with 1.98 million sold and 12.6 per cent of these passed in.

In all 300,000 fewer bales were sold last year than the year before and the biggest buyer of Australian wool by volume in 2007-08 was Modiano Australia, buying 137,490 bales or 6.91pc of the total offering, followed by Fox and Lillie with 131,293 or 6.6pc of the bales sold.

But for one outspoken wool buyer, the end of the selling season spelt doom and gloom.

Harvest Wool Australia wool principal, Steve Noa, said the closure of Graincorp's wool buying department and Elders greasy wool trading and risk management service was another sign of an industry in trouble.

"We are in an environment of low wool production, even lower wool demand and a fragmented selling system," he said.

Mr Noa said the further rationalisation of wool buying showed the need for radical change in the way wool is sold.

"Those who argue there should be change away from from the auction system have yet to come up with a viable alternative. There is only one option left now to maintain a fair and viable wool exchange. Centralise."