FORWARD wool trading in Australia was quiet this week, but stable in price.

The benchmark 19 micron June 2026 contract traded between 1780c and 1800c/kg, with 18 micron around 1950c and 17 micron near 2100c. Some renewed interest appeared for 21 micron early next year near 1750c. Overall, the curve has flattened slightly as the market waits for direction.

The auction wool market eased again this week, marking a third straight decline after the strong rally through September. The passed-in rates climbed to around 27pc as many growers held firm on price, showing some resistance to the softer tone.

Crossbreds slipped 15–25c, while cardings were steady. It was more of a consolidation week than a correction as buyers remained active, but selective.

Macro & currency

The Aussie dollar is siting around US65-66 cents, supported by firm commodity prices, but capped by a strong US dollar and cautious global sentiment. Exporters continue to benefit from favourable exchange rates, with returns still attractive at current levels.

Economic backdrop

According to Mecardo, global conditions are gradually turning more supportive for wool.

Interest rates are beginning to ease in several economies, flock numbers remain historically low, and Chinese and European demand is showing early signs of recovery. These trends should continue to underpin the medium-term outlook for greasy wool prices.

Outlook

This latest dip looks more like the market catching its breath than turning lower. Demand remains firm for quality fine Merino types and forward prices are still solid compared with long-term averages.

With around 40,000 bales set for next week’s sale, the market appears to be finding its new level after a strong run through winter and early spring.

Source – Southern Aurora Markets.