UPWARD movement in the Australian wool auction market slowed this week as buyers remained selective, with crossbreds outperfoming Merinos.

The Australian Wool Exchange said the market had another overall rise, pushing closer to all-time highs.

Sydney and Melbourne brokers offered 21,251 bales, 4411 fewer than last week, and 4 percent were passed in.

“This was the smallest national offering since June last year,” AWEX said.

“By the end of the first day in the Merino fleece, the Micron Price Guides (MPGs) movements ranged between minus 15 and plus 37 cents.

“The crossbred sector had another day of strong gains, in Melbourne the crossbred MPGs added between 10 and 30 cents,” AWEX said.

“These rises helped the EMI record the positive result that it did.

“The benchmark Eastern Market Indicator rose by 9 cents.”

AWEX said although currency movement again played a part, the EMI had a larger rise in US dollar terms, adding US17 cents for the day.

“On the second day, the Merino fleece market again performed with varied results.

“The MPGs closed the day with movements ranging between minus 25 and plus 17 cents.”

AWEX said the crossbred sector was again the standout performer.

“In the south, the crossbreds added another 5 to 33 cents, resulting in large overall gains for the week.

“The EMI added 1 cent for the day, finishing the day and the series at 1989 cents/kg clean.”

AWEX said with only one sale left in the 2025/26 wool selling season, the EMI has made tremendous gains.

“The EMI was 1207 cents twelve months ago, and over the course of the season the EMI has added 782 cents, an increase of 64.8pc.

“In USD terms, the EMI was US784 cents twelve months ago and has since added US621 cents, an increase of 79.3pc.”

Next week Fremantle returns to the roster for the final sale of the 2025/26 wool selling season. There is currently expected to be 27,697 bales on offer in Sydney, Melbourne and Fremantle.

Preferred processing wools got most support – AWI

Australian Wool Innovation said despite a stronger Australian dollar, wool demand remained firm, with the USD EMI posting a larger gain than its AUD counterpart.

“While the EMI finished the week higher, the varying movements across Merino micron indicators suggest buyers remained selective.

“The strongest competition appeared to be directed towards wool meeting preferred processing specifications, while lower-testing or less desirable lots generally saw less support,” AWI said.

AWI said the fine Merino types (16.5-19µ) were 5–10 cents dearer overall, although results were mixed across individual microns. Medium Merinos (19.5-21µ) were generally unchanged to slightly firmer, gaining around 5 cents. Crossbreds (25-32µ) lifted 30-35 cents, while Merino cardings gained 15-20 cents.

“The strongest competition remained in the broader wool categories, with crossbreds continuing to outperform the Merino sector.”

AWI said the market appears to be entering a more balanced phase, with further sharp gains becoming harder to achieve.

“However, with early season offerings forecast well below historical norms and selling volumes remaining tight, limited supply should continue to underpin current price levels.”

Sources – AWEX, AWI.