AUSTRALIA’S auction wool market has started the new season in a positive currency-assisted fashion, the Australian Wool Exchange said.

AWEX said the market recorded an overall increase for the second consecutive selling series, meaning increases in the first two weeks of the 2025/26 selling season.

With many parts of the country experiencing winter conditions and shearing activity low, AWEX said the national quantity was again relatively small.

AWEX said there were 29,275 bales, 1559 more, offered this week.

“Currency has again played its role this week, this time in favour of the Australian wool producer.

“The Australian dollar dropped US0.61 cents when compared to the US dollar since the close of the previous series,” AWEX said.

“Given that most trading is done in US dollars (USD), this gave exporters more buying power.

“This quickly equated to increased prices in the sale room.”

AWEX said in welcome news to Merino wool growers, the fleece sector was the driving force behind the overall market increase.

“The movements in the Merino fleece Micron Price Guides (MPGs) ranged between negative 6 cents and positive 25 cents.

“The benchmark Eastern Market Indicator added 2 cents on each of the two selling days, closing the series four cents higher at 1212 cents/kg clean,” AWEX said.

“The EMI has now risen for four consecutive selling days.

“After steadily climbing for the previous two months, the crossbred market settled.

AWEX said the prices offered were generally within 10 cents of those on offer at the previous sale and this was reflected in the MPGs.

“Due to the currency fluctuation, when viewed in USD terms the market movement was less favourable.

“The EMI dropped US5 cents for the series, finishing the week at 790 cents.”

Market was assisted by currency rates – AWI

Australian Wool Innovation trade consultant Scott Carmody said a currency-assisted market helped Australian wool auction prices maintain and generally add a few cents in value this week.

“The leading forex pair of the AUD v USD shifted 0.7pc to the favour of local price returns and those rates stayed in play for the majority of time auctions were in operation.

“Prices though failed to fully realize those potential gains with the EMI benefitting by less than half of that forex advantage by increasing by just 0.3pc,” he said.

“The subdued tone of most exporters towards the market outcomes were still ruling at the start of the selling week.

“No clear signals had been forthcoming since the conclusion of the previous week’s activities,” he said.

“Some signs of slight demand improvements did appear though as the week progressed.

“Traders were reportedly executing a few new sales which allowed for movement of some stocks, freeing up cash and allowing greater participation in the sale rooms,” Mr Carmody said.

“As one leading buyer noted, not game changing, but at least there are signs of some renewal.”

Mr Carmody said despite the lacklustre movements in the leading price indicators, the ebbs and flow of individual types pricing continued this week.

“The majority of the Merino gains came about on the final day.

“All Merino types finer than 18 micron came under close scrutiny from not just traders and top makers, but also direct buying orders from Europe, which forced levels to rise by 10 to 25c/kg clean,” he said.

“Better wools were more affected, and three or four clips exhibiting the superior spinners’ quality fetched well over 200/kg premiums from the premium Italian weaver reps.

“The 18 to 19 micron Merino wool prices stayed largely where the market had them pegged, but more interest on all descriptions 19.5 micron and broader saw these sale lots forge upwards of 20c/kg dearer for the week, Mr Carmody said.

“The Fremantle market by and large missed the improvements as they had sold Tuesday, prior to the better support appearing. Crossbred and carding sold to a largely unchanged scenario, with just minimal adjustments.”

Mr Carmody said Australia’s most dominant buying house featured at the top (or near) of all type sectors.

“Top makers from China competed strongly and lifted their buying rates towards the close of selling.

“All other manufacturers and traders also increased their interest,” he said.

“Perhaps the upcoming three-week recess in sales is prompting this renewed vigour?”

Next week Fremantle will not be in operation. With only Melbourne and Sydney selling, the national quantity will fall. There are currently 23,990 bales on offer nationally.

Sources – AWEX, AWI.