THE largest weekly price gain for wool in 17 months has lifted the Eastern Market Indicator (EMI) above 1100 cents a kilogram for the first time since February 2014.
After the Australian Wool Exchange (AWEX) opened the new year on 1059c, unchanged from 2014's final week, the EMI climbed to 1070c last week. This week's 31c rise brought the indicator up to 1101c/kg.
AWEX senior market analyst Lionel Plunkett said this week's auctions saw solid interest for all wool types, but like last week most of the action was in the finer ranges.
"Best style and 40 Newtons per kilotex (Nkt) were initially the focus, rising 30 to 50c in the 18.5 and finer range on the opening day," Mr Plunkett said.
"However, there was a reversal of fortunes on Thursday when support for the better types moderated as buyers turned their attention to the lower spec grades and those in the broader microns."
Mr Plunkett said a jump in price levels of 30c was not uncommon and had a number of lots in the 20-micron and broader range trading over 1200c.
"Adding to the positive vibe was a strong finish to the day in Fremantle which closed out the week outperforming the East Coast in selected pockets."
The west closed on 1130c/kg (up 41c), with 1127c at Sydney (up 29c) and 1084c in Melbourne (up 32c).
NOTE: The first version of this article mistakenly ran with headline "two-year high".