AUSTRALIA’S wool benchmark has broken through the 1400 cents/kg barrier for the first time in more than three years.
Market predictions are being made of further rises as demand builds for the limited raw supply to replenish empty supply chains.
The Australian Wool Exchange’s Eastern Market Indicator surged 109 cents higher this week as the wool market’s momentum continued to build.
“The EMI broke through the 1400-cent mark to close at 1453 cents, its highest point since June 2022,” AWEX said.
“The weekly rise was the largest in six years and extended the rally to 10 straight weeks, equalling the longest unbeaten run (weekly) since 1987.
“National offerings remained steady with 29,773 bales put to auction. Prices lifted sharply from the opening lot on Tuesday and continued to climb as buyers chased quantity,” AWEX said.
“By the close of the day, the market was generally 100 cents stronger than the previous week, driving the EMI 72 cents higher in its biggest single-day gain since January 2021.
“Wednesday’s sale followed the same pattern, beginning firmly and strengthening further as the day wore on.”
AWEX said by the end of trade it marked the 18th consecutive day of increases, with Merino fleece adding another 50 cents.
“The results of the week now have fine Merino types (19 microns and finer) sitting at two-year highs, while broader Merinos are at five-year highs.”
AWEX said skirtings followed suit, lifting between 100 and 150 cents clean for the series.
“Crossbreds also enjoyed a strong week, closing 60 to 80 cents higher across both days to reach five-year highs.
“Merino Cardings were more subdued, edging 10 cents higher,” AWEX said.
“Sellers were keen to meet the rally, pushing the clearance rate to its strongest level in seven years.
AWI acknowledges call for more certified non-mulesed wool
Australian Wool Innovation said it was an incredible week at the Australian wool auctions.
“Merino wools sold 120 to 180ac dearer whilst crossbred types were 60 cents/kg clean dearer.
“The passed in rate of just 1.8pc tells the story as growers jumped at the chance to take the better money on offer,” AWI said.
AWI said the recently concluded Nanjing Wool Market conference was widely believed to be the most positive and best opportunities for business since 2018. Key factors driving the positive momentum this week include:
- Lower than normal inventory (stock) is being held by a majority of first stage and a portion of the second stage and beyond makers and processors. Greasy wool stocks from all origins is at historical low levels and most mills were looking to renewal.
- Demand has lifted, more volume of wool products is moving through the supply chain and more swiftly allowing for turnovers to improve. Much of this new business is made up of blends mostly to meet price points as retail recovers and uniform business starts to build again.
- Some of the mid-size China mills had relied upon a local single entity for supply that has now changed and appear to have adjusted their business model. Those mills are now using forward contracts written directly from the overseas traders, creating more competition.
- Demand for Europe now relies partly on China produced tops or yarns.
AWI said many mills in China now compete for that higher quality, potentially more lucrative business.
“The dominant supply for that consumer and manufacturing market relies upon certification of RWS/NM to be carried through to the exported product from China to Europe.
“Demand is predicted to keep rising for that product supply chain and calls to increase supply of RWS/NM was placed in front of all wool producing nations,” AWI said.
AWI said Australian traders had/have very little stock left to sell so they must be aggressive in auction to meet the higher demand and predicted business opportunities going forward into what was being widely tipped as a sustainable bull run in the short term.
The bale offering is forecast to lift to 35,260 bales across the Sydney, Melbourne and Fremantle auctions next week.
Wool market getting firm is good sign for Australian farmers. They will survive and try to increase production. The market has been slow since COVID, so this rise will give good strength to Merino and crossbred wool.
Long live wool producers.
Umeysh shroff
28/09/2025