DESPITE experiencing ups and downs in recent weeks the wool market finished last week on a high note to edge above 1250 cents a kilogram.
The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) closed at 1251c/kg last week - up 17c/kg on the week prior and an impressive 201c/kg higher than the same selling week last year.
In US dollar terms the EMI lifted 11c/kg for the week to 894c/kg.
It was the second largest bale offering for the season at 46,896 bales, however, this was back from the predicted 50,000.
Only 4.9 per cent of the bale offering was passed in at auction - down 9.7pc on the week prior.
National Council of Wool Selling Broker of Australia executive director, Chris Wilcox, said the current level of the EMI placed it around the 95th percentile for EMI price distribution - which means the current EMI was better than 95 per cent of weekly prices since June 2004.
He said Micron Price Guides (MPGSs) for 18, 19, 21, 23 and 28 micron wool, as well as Merino cardings were at the 87th percentile or better, and the 23 MPG and Merino carding indicators were both at the 98th percentile.
However, Mr Wilcox noted it was a different story in US dollar terms.
The current EMI of 894USc/kg was at the 62nd percentile, which means mills buying in US dollar terms were paying only a little above average.
In US dollar prices the 18 MPG was at the 47th percentile, the 19 MPG was at the 54th percentile, the 23rd MPG and Merino carding indicator were all at the 62nd percentile, while the 28 MPG was at the 76th per centile.
Elders northern zone wool manager Bruce McLeish, said given the relatively low basis in US dollar terms, mills were happy to see prices moving north.
"It brings confidence to all those involved in the processing pipeline to see prices gradually increasing, and whilst demand is still only moderate, another week or two of steady gains will see many more orders committed."
Buyers from China were dominant, with support also from Europe and India.
Mr McLeish said best quality superfine wool continued to find favour with buyers, particularly European houses that have strong concerns about quality and quantity past Christmas.
"Demand is present in all the major consuming countries, but the actual buying orders are being held whilst the buyers ponder whether the times is right or not."
However, he said with very little stock in the pipeline and an increase in demand, mills would be forced to scramble for raw material ahead of the Christmas recess.
The offering for the next three weeks is expected to be 13.5pc less than the same period last year, however, those sales did have the three biggest offerings of the 2014/15 season.
