AUSTRALIA’S auction wool market has experienced its strongest calendar year opening day in more than 45 years.

The Australian Wool Exchange said the market has resumed after the annual three-week Christmas recess in stunning fashion, recording sharp rises across the Merino fleece sector of the market and solid gains in the others.

“Many industry observers were predicting a dearer market, based on overseas sales made during the break; however, the strength in the market surprised many.

“The eastern markets opened proceedings and from the start bidding was extremely spirited, with a large spread of buyers fighting hard for market share,” AWEX said.

“By the end of the first day, the Micron Price Guides (MPG) in the eastern centres had risen by between 47 and 119 cents.

“With all sectors in the market recording gains, the Eastern Market Indicator (EMI) rose by 69 cents,” AWEX said.

“This was the best opening day start to a calendar year since 1979.

“The western MPGs rose by between 99 and 118 cents, with a noticeable strengthening late in the day. The western indicator rose by an impressive 99 cents,” AWEX said.

“On the second day, the eastern centres took the lead shown late on day two in the west.”

Brokers offered 37,065 bales, 1200 fewer than the last sale in 2025, and 1.3 percent were passed in.

AWEX said the main buyer focus was on the higher yielding wool, particularly lots possessing favourable additional measurement results and these lots recorded the largest improvements.

“However, all types and descriptions recorded gains as buyers fought hard to accumulate quantity in the rapidly rising market.

“The MPGs added another 23 to 58 cents.”

AWEX said the EMI rose by a further 38 cents for the day, resulting in a 107-cent increase for the week, or 6.9pc.

“Only seven weeks have recorded a larger increase since 1988.

“This was the best weekly start to a calendar year since 2011.”

AWEX said the EMI is now 460 cents higher than the corresponding sale of the previous season, an increase of 38.7pc.

“The EMI is now at its highest point since January 2020, when it reached 1643 cents.”

Prices rises demand-driven in tight supply conditions – AWI

Australian Wool Innovation said the Australian dollar was little changed against the US dollar this week, stabilising after recent declines and trading around US66 cents.

“The opening sale of 2026 confirmed a decisive shift in market sentiment, with buyer behaviour indicating urgency rather than caution following the seasonal recess.

“Competition was concentrated on well-prepared Merino fleece, particularly within the core 18–21 micron range, suggesting confidence in downstream demand rather than short-term opportunistic buying,” AWI said.

“The scale of the price movement points to buyers actively lifting limits to secure volume, rather than the market simply responding to reduced offerings.”

AWI said the week’s results reflect a demand-driven adjustment supported by tight supply conditions.

Next week’s increased offering of 43,326 bales will test these renewed demand signals and determine whether current levels can be maintained as a firmer base. Next week will see all three centres sell on a Tuesday-Wednesday roster.