CROSSBRED wool prices improved again at auctions across Australia this week, but Merino fleece vales were mixed.

The Australian Wool Exchange said the market has started the new 2025/26 wool selling season in a similar fashion to recent months despite smaller than normal offerings.

AWEX said currency was the largest driver of market movements.

“The opening sale of the season is traditionally one of the larger sales on the program, as this is the first opportunity for sellers wanting to offer in the new financial year.

“This year that was not the case, the 27,716 bales on offer this was the smallest opening sale of the season since AWEX records began (1997),” AWEX said.

“This was 6525 bales less than last season’s opening, a reduction of 19.1 percent.

“The small offering received strong support across multiple buying houses; however, currency was expected to play a large part after the US dollar (USD) hit historic lows during the week,” AWEX said.

“Considering the currency fluctuations the market held up remarkably well.”

AWEX said the Merino sector results were mixed and a buying squeeze of wool broader than 20.5 micron resulted in spirited bidding on these types, pushing prices higher for the week.

“The movements in the merino fleece Micron Price Guides (MPGs) ranged between positive 16 cents and negative 30 cents, with wool finer than 17.5 micron selling well.”

AWEX said the crossbred sector has again been the leading light, adding further price increases to those recorded over the previous few months.

“The crossbred MPGs gained between 16 and 25 cents.

“These gains combined with a generally unchanged skirting market and a stronger carding market played a large role in the one cent rise in the benchmark Eastern Market Indicator (EMI),” AWEX said.

AWEX said the Eastern Market Indicator closed at 1208 cents/kg clean.

“Viewed in US dollar terms, the news was more favourable; the EMI added US11 cents for the series.”

Merino wool price drift – AWI

Australian Wool Innovation trade consultant Scott Carmody said the market generally defied the stronger AUD v USD and in USD terms, and the EMI gained 1.3pc in value, “perhaps signalling underlying demand?”

“The pre-sale tone of exporter traders remained subdued and somewhat lacking in confidence.

“Reports of new business were few and far between,” he said.

“This sluggish trading environment was later evidenced by the drift in prices that occurred across a large percentage of the Merino offering.

“The highlight of the selling week was the crossbred wool types, which were highly sought and a general 15 to 25 cents dearer.

Mid-micron Merino wools drifted downward 15 cents, while wools finer than 18 micron and broader than 20 micron had gains of 5-15 cents, and carding types appreciated 5 cents, Mr Carmody said.

He said buying in the Merino sector was again dominated by the largest China top makers alongside the major trader, but all other type segments were the domain of the traders.

Next week’s bale offering is expected to of a similar size. There are currently 29,015 bales on offer in Sydney, Melbourne and Fremantle.

Sources – AWEX, AWI.