THE wool market has continued its "ripper run" with the Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) now sitting at 1153c/kg after it lifted another 23c/kg at the close of trade last week.
This marked the sixth consecutive week, and eighth consecutive sale days of price increases, at all three selling centres (Melbourne, Sydney and Fremantle).
The EMI is now at its highest level since May 2012 and the EMI is now 105c/kg (10 per cent) above where it was at the same time last year.
Only 1.9 per cent of the 46,370 bales offered were passed in (98.1pc cleared).
AWEX senior market analyst Lionel Plunkett said last week's offering contained slightly more wool from hold stock than the week prior, although not significantly more.
Trend wise, Mr Plunkett said the increase in the price spread between the 18 and 22 AWEX Micron Price Guides (MPG) was now between 160 and 170 cents.
He said a range of this level was last observed in February 2013.
"This range has been steadily increasing since July 2014 from a narrow range of 20 to 30 cents," Mr Plunkett said.
The 18 MPG in Sydney gained 15c/kg to settle at 1356c/kg and the 22 MPG lifted 33c/kg to finish at 1192c/kg.
In Melbourne the 18 MPG gained 23c/kg to close at 1348c/kg and the 22 MPG finished at 1186c/kg after a 29c/kg gain.
The 18 MPG in Fremantle rose 31c/kg to close at 1318c/kg, while no sales of 22 micron were recorded.
The AWEX Merino Cardings Indicator finished at 982c/kg, with the Merino cardings almost hitting the 1000c/kg at Melbourne after gaining 12c/kg to close at 998c/kg.
Elders northern wool manager Bruce McLeish, Brisbane, anticipated the current market rally would continue for the next week or two.
"The scene is set for a little more upside to the current market, followed by a decrease of up to 50 per cent of this rise, by which time it will be heading towards June and the auction recess with a new season looming," he said.
"With low stocks throughout the pipeline and Australian production forecast to be maintained at best into 2016 it would be fair to assume better prices going forward."
Mr McLeish said since early March the market had risen by about 60 cents in both currencies (Australian dollar and US dollar) and the EMI measure in Euro was now above 800 for the first time in two years.
More than 45,000 bales were rostered for auction this week.
For more on the wool market, see p80.
