AUSTRALIA’S auction wool market has trended higher for the third consecutive week, despite the Australian Wool Exchange reporting the national catalogue increasing by 5648 bales to a 38,246-bale offering.

On the opening day, only Sydney and Fremantle were in operation, with Melbourne shifting to Wednesday/Thursday selling to accommodate a Monday public holiday.

“By the end of the day all sectors, across both centres recorded rises.

“The benchmark AWEX Eastern Market Indicator (EMI) rose by 5 cents, with only the 12-cent rise in the northern indicator influencing the result,” AWEX said.

“On the second day all three centres were in action and the market continued to rise.

“The EMI added a further 9 cents for the day, and only a lacklustre performance from the Melbourne crossbred sector preventing a larger increase in the EMI.”

AWEX said on the final day Melbourne sold in isolation and the market continued to rise unabated. With only Melbourne contributing to the EMI the increase for the day was 3 cents.

“This rise in the EMI marked the eighth selling day in row of positive movements.

“The EMI has added 102 cents across this run,” AWEX said.

“This was the equal longest run of daily rises in the EMI since May2022.

“The last time the EMI had a longer upward run of daily rises was back in November 2016, when the EMI posted nine consecutive increases.”

AWEX said the EMI finished the week 17 cents higher, closing the selling series at 1242 cents/kg clean.

“The EMI is now 88 cents higher than its 2025 opening and exactly 100 cents higher for the 2024/25 selling season.”

AWEX said despite a strengthening of the Australian dollar, the market also rose in USD terms, adding US20 cents for the week.

Wool quality and supply under scrutiny – AWI

Australian Wool Innovation trade consultant said wool prices at this week’s Australian wool auctions were once more fully to the seller’s favour.

“From the outset of selling, buyers were as keen if not keener than last week, but only after an initial period of testing the atmosphere to see any signs or chance of more opportune buying.

“After this test failed to materialize, almost all of the usual strong participants ensured a solid result for all sellers compared to previous levels,” he said.

Mr Carmody said due to a public holiday Monday in the southern states, the auctions were scheduled over three days this week.

“Both Fremantle and Sydney jumped higher on the first day, but as Melbourne joined in on the middle day of selling, prices somewhat cooled as the greater supply exerted minor resistance to the dearer trend.”

Mr Carmody said the strengthening Australian dollar (AUD) against mainly the US Dollar (USD) and Chinese Yuan (CNY) also started to apply some braking pressure, but by the final day, buyer willingness at the standalone sale in Melbourne resumed that bullish trend as risk mitigation was sought.

“Merino wools were again the main target of the trade.

“The outstanding performing types within that breed sector were the 19 micron and broader types of all descriptions,” he said.

“These wools were a further 25-35c/kg clean dearer for the week.

“The diminishing supply of the better superfine wools finer than 18micron were also chased hard, with price gaps widening between the best and lower wools of similar microns in that area,” he said.

“The concerning price gaps though remain the lack of a decent micron premium for those wools supplying the best and finest luxury apparel markets that the Merino breed can readily and usually satisfy.

“Quality of supply overall, as well as the well-known and problematic drop in volumes, is being continually monitored and evaluated by buyers and exporters,” Mr Carmody said.

“Due to some tough drought conditions in many wool growing regions and many other regions looking like heading the same way, a large proportions of the offering is now sitting in the harder to place category.

“Lower strengths and yields are combining with higher calculated cvh readings to cause this,” he said.

“The growing volumes of these lower types may have processors looking to these wools to get value into their production runs.”

Next week the national offering is expected to rise to 41,064 bales.

Sources – AWEX, AWI.