Wool growers are rejoicing after a 62c/kg jump in prices last week brought rates to some of their highest levels for years.

The Eastern Market Indicator closed after last week’s auctions at 1786c/kg clean, 43 per cent higher year-on-year in Australian dollar terms and 57 per cent higher than 12 months ago in US dollars.

Many of the indicators are at some of their highest levels ever, with 19 micron in the 100th percentile, 21 micron at its 99th percentile and 17 micron in its 81st percentile.

Moses and Son managing director Marty Moses from Temora, NSW, said the lack of sales this week due to the Easter break had created some panic buying.

News that the wool shorn and tested this season was down 6 per cent was also fuelling competition, he said.

“Of the 36,252 bales offered at auctions last week, the clearance rate of 98.2 per cent would be the equal best we have seen in recent times,” Mr Moses said.

“Buyers seem to have gone from buying just in time, to just in case (they can’t get the wool they want).”

Figures from the Australian Wool Testing Authority show the amount of wool tested in March was down 10 per cent year-on-year, and from July was down 9.5 per cent, from 230.4 million kilograms last season to just 208.5 million kilograms this season.

In last week’s market, the biggest gains were at the finest end, with the 17 micron indicator up 130c/kg to close at 2458c/kg at sales in Melbourne.

But all indicators for 20 micron wool and finer closed above 2000c/kg across the three sales centres of Melbourne, Sydney and Fremantle.

Mr Moses said demand in China, which had never been better, was balanced by the increased costs exporters were facing, including lifts in shipping rates.

“It’s been a wild ride this year for wool prices but what it has done is brought the focus back on sheep,” he said.

Wool Producers Australia president Steve Harrison said he was excited about the lift in rates, and believed it would encourage growers back to the industry. “It’s a serious option now to go into sheep, but it would be even better if the EMI was to get to 2000c/kg clean and it’s heading in the right direction,” he said.