Southern Aurora Markets partner Mike Avery.

“Do not let the behaviour of others destroy your inner peace.” – Dalai Lama.

AUSTRALIA’S wool auction market pushed away the bizarre offshore behaviours and a roller coaster US dollar to post strong gains across most micron groups.

The 19 micron and coarser Merino wools rose 2.5-3 percent, as did the crossbreds.

In the finer wools, the rise was a little more subdued with gains on average of about 1 percent. Passed-in rates remain low at around 5pc.

Finally, the technical analysists have something to talk about, at least in AUD terms. The major price guides, the EMI – 19 MPG and 21 MPG are all testing significant resistance levels of the last two years.

The forward market remains calm. The spot 19 micron MPG at auction finally breached the 1500-cent barrier that has held firm since May 2023. Forward buyers will need a little more convincing to pay further premiums having been constantly disappointed by rallies throughout 2024. Sellers remain frustratingly absent, for the most part giving buyers little or no indication of their intention.

The only trade on the forwards this week was in the 21 micron contract that traded 20 cents over cash for spring at 1425 cents. This equates to the 85th percentile of prices for the last five years.

A further rally next week may open opportunities for growers to hedge at levels rarely achieved since the COVID upheaval of 2020. Buyers are likely to remain a little cautious with the shadow of a US-China trade war and its potential impact on fibre demand looming large. This against a backdrop of low supply concerns makes for interesting and likely volatile times.

This week’s trade

October 2025 21 micron                                1425 cents                          10 tonnes

Source – Southern Aurora Markets.