AUSTRALIAN wool prices improved at auctions this week, driven by increased China demand for limited supplies, and especially for scarce good specification fine Merino lines.

The Australian Wool Exchange said market has continued to surge upward in this selling series, recording a large overall rise this week.

“After last week’s larger than normal offering, this week the quantity dropped by 13,489 bales and there was 37,212 bales available to the trade. The passed-in rate was 2.1 percent.

“From the opening lot of the first selling day, it was immediately apparent that the market was on the rise,” AWEX said.

“Strong widespread competition helped to push prices higher all the way to the final lot.

“In the Merino fleece sector, the individual Micron Price Guides rose between 21 and 85 cents.”

AWEX said as Sydney and Fremantle did not enjoy the rises on offer at the stand-alone Melbourne sale last week, the largest rises were recorded in these centres, particularly for wool 18 micron and coarser.

“The benchmark Eastern Market Indicator rose by 26 cents for the day, pushing up to 1742 cents/kg clean.

“On the second day, the market continued to rise. Across the country the MPGs added another 22 to 56 cents,” AWEX said.

“The EMI rose by a further 25 cents, making the weekly rise 51 cents.

“This was the tenth consecutive selling day where the EMI recorded a positive movement.”

The EMI closed the week at 1767 cents/kg clean.

“On the 5th of March last year the EMI was sitting at 1225 cents.

“Over the previous twelve months, the EMI has added 542 cents or 44.2pc,” AWEX said.

AWEX said currency was a contributing factor in the rises of this week, and a fall in the Australian dollar compared to the US dollar meant that when viewed in USD terms the rises were not as significant.”

The EMI gained US13 cents for the series, closing at US1237 cents/kg clean.

China demand and supply driving prices

Australian Council of Wool Exports and Processors president Josh Lamb said the industry is still in a situation of supply being lower than demand.

“I would think slightly more than 50 percent of the market is supply-driven.

“There is no doubt that demand has improved in China, but it hasn’t necessarily improved in other markets,” he said.

“But that bit of improvement in China with the lower supply is what is driving the market.”

Mr Lamb said the supply of 17.5 micron and finer wool of with low fibre length variability and free of vegetable matter is also low.

“The supply of low CvH (Coefficient of Variation of Hauteur) good spec low FNF (free or nearly free, less than 1pc VM) wool is incredibly limited for this time of the year.”

He said there are large amounts of tender wool on the markets.

“Those sound low CvH wools are quite scarce at the moment and that’s what’s driven the fine wools this week.”

Premiums for tensile strength, style and low VM – AWI

Australian Wool Innovation said the smaller bale offering, combined with a softer Australian dollar, helped support the market and drive solid gains, particularly in the Merino sector.

“Premiums were strongest for high-strength, well-styled Merino fleece, while discounts remained concentrated in higher vegetable matter, poorer colour and lower style types.

“Finer Merino types showed the greatest strength, rising 90 to 95 cents across the selling centres,” AWI said.

“Fremantle led the increases, with these types gaining 115 to 120 cents.

“Medium Merino wools also attracted strong buyer interest, recording gains of 80 to 85 cents.”

AWI said in contrast, the crossbred sector experienced a quieter week, easing 5 to 10 cents.

“The cardings market in the eastern selling centres continued its strong run, finishing 35 to 40 cents higher, while in the west cardings eased 5 to 10 cents.”

AWTA testing down 5pc year-on-year in February

AWI said the total weight tested for February 2026 compared with February 2025 shows a 5.29pc reduction in wool tested.

The progressive weight tested for July 2026 to February 2026 compared with the same period last season shows 9.4pc less wool tested so far this season.

AWTA Ltd has tested 181.7 mkg (million kilograms) this season compared with 200.6 mkg for the equivalent period last season.

Next week’s offering has risen from the original forecast figures, as the dearer market has encouraged more sellers to offer their wool. There is expected to be 45,973 bales on offer in Sydney, Melbourne and Fremantle.

Completed forward wool trades

Sources – AWEX. AWI, Southern Aurora Markets..