AUSTRALIA’S wool price benchmark, the AWEX Eastern Market Indicator, this week reached its highest point since the end of June and the highest it has been for the 2024/25 selling season.

The Australian Wool Exchange said the market this week recorded an overall increase, driven by solid price rises in the Merino fleece sector across both selling days.

Brokers offered 33,366 bales, 5060 fewer than last week.

“By the end of the opening day the individual Merino Price Guides (MPGs) across the country had risen by between 2 and 24 cents.

“The only exceptions were the 18.5- and 19.5-micron MPGs in the north which remained unchanged,” AWEX said.

“The benchmark AWEX Eastern Market Indicator added 3 cents for the day, climbing to 1140 cents/kg clean.

“An overall softening in the crossbred sector prevented a larger rise,” AWEX said.

“The first day price rises could be largely attributed to currency movements.

“On Tuesday, the Australian dollar (AUD) dropped to 64.33 cents, its lowest level since August.”

As a result of this weakening of the AUD, when viewed in US dollar terms, AWEX said the market fell.

“The EMI dropped by US3 cents for the day, falling to US740 cents.”

AWEX said the second day of selling the market recorded another overall rise, again mainly due to solid increases across most of the published merino fleece MPGs.

“With only the northern and southern regions in operation, the movements in the MPGs ranged between minus 4 and plus 48 cents.

“Only the 18.5 micron and coarser MPGs in the north did not record increases,” AWEX said.

“The EMI added another 4 cents, closing the week 7 cents higher at 1144 cents/kg clean.”

AWEX said in a similar pattern to the first day, a weaker crossbred market again prevented a larger rise in the EMI.

“The EMI is now trading at its highest point since the end of June and the highest it has been for the 2024/25 selling season.

“The stronger market has encouraged more sellers to the market, pushing next week’s offering above the previously forecast figure.”

New China business, traders and European demand lift market – AWI

Australian Wool Innovation trade consultant Scott Carmody said while wool buyers were aided by a cheaper Australian dollar’s foreign exchange (forex) rate against the US dollar, some smatterings of new Chinese business, export traders forward commitments requiring filling and some stronger European buying all combined to initially solidify the market.

“Following this early consolidation, prices then gained momentum to impose some handy additions to the established quotations.

“The most sought of all Merino types offered was the European spec super fine and ultrafine types finer than 18 micron,” he said.

“These wools advanced a general 40-70c/kg clean, but in some cases buyers were paying well over 100c/kg clean more than the previous sale for some individual farm sale lots.

“The broader than 18 micron Merino segment was by no means neglected and 15-20 cents extra was extracted from buyer’s pockets,” he said.

“Being a designated super fine sales week, it was highly encouraging to general industry confidence to see the improved worth of these premium wools destined for the luxury apparel sector.

“Perhaps the highlight of the week was the two sale lots in Sydney that realized 20,500 cents and 20,000 greasy cents per kg,” Mr Carmody said.

“Both lots were from the same farm in the New England area of NSW and tested sub-13 micron and sold under a standards certification banner.”

Mr Carmody said China’s largest wool top maker returned to the top of the Merino fleece buyers’ lists this week, but only just.

“Cumulatively though, across all type sectors, the major traders remain dominant.

“These entities continue to exert buying pressure into the sale rooms as quantities on offer remain comparatively very low,” he said.

“This is highlighted by the sold volumes by bales for the 2024/25 season standing at 18.8pc less than last season at the same time.”

He said sellers were keen to offload wool this week, with a passed-in rate of 5.5pc for the week, down 3.3pc.

“Away from the Merino sector, crossbred wools and the carding and oddment sections of the market all sold firm tending buyer’s favour.

“Interesting to note was the activity of two crossbred buying orders from China, with two companies strongly ramping up purchasing on the final day selling,” Mr Carmody said.

There is expected to be 39,580 bales on offer nationally next. If this quantity is realised it will be the largest sale since October, AWEX said.

Sources – AWEX, AWI.