AUCTION wool prices for some Merino wool this week rose to a level not seen since early 2023 and the benchmark AWEX Eastern Market Indicator increased to its highest point in more than a year despite a lift in the bale offering.

The Australian Wool Exchange said the market this week continued its positive start to the 2025 calendar year, recording further solid rises.

“The national quantity rose compared to last week, due in part to the higher prices on offer during the previous series, which encouraged more sellers to the market,” AWEX said.

There was 37,650 bales available to the trade, 4214 more than last week, and brokers passed in 5.6 percent.

“The first day of selling was buoyant, from the opening lot it was apparent that the market was heading in a positive direction,” AWEX said.

“By the end of the day, the individual Micron Price Guides (MPGs) across the country for Merino fleece had risen by between 6 and 41 cents, with only the 17-micron MPG in the north resisting the trend and falling by a solitary cent.

“The benchmark AWEX Eastern Market Indicator (EMI) added a healthy 15 cents for the day.”

AWEX said on the second day only Sydney and Melbourne were in operation and the market generally continued to rise, predominantly in the medium to broad microns.

“In the south, the 21micron MPG climbed to 1449 cents/kg clean.

“This is its highest point since the 10th of May 2023,” AWEX said.

“The EMI added another 8 cents, finishing the series 23 cents higher, closing at 1215 cents/kg clean.

“The EMI is now at its highest point since the 10th of January 2024.”

AWEX said the EMI has now risen for four consecutive selling days.

“Minimal currency movement since the close of the previous series meant that the market gains were also realised in US dollar terms.

“The EMI added US18 cents for the series, closing the week at US760 cents,” AWEX said.

“This was the highest weekly rise in US cents since April last year.”

Several factors underpinned price improvements – AWI

Australian Wool innovation trade consultant Scott Carmody said all wool types and descriptions were dearer at this week’s Australian wool auctions, with some substantial gains being recorded through the broader end of the Merino sector.

“Some key ingredients this week forced price pressure upon the trade.

“Not the least was the forex, with the AUD traded at just over 0.61 cents against the USD since the last auction,” he said.

“This is masked by the week-to-week movement being higher.

“In addition, some buying from Europe and auction purchasing by EU top maker appeared,” Mr Carmody said.

“Late in the week, Indian mills showed interest, as further buying from China stalled as spot prices moved up.”

Mr Carmody said the lower-than-normal auction volumes available in Melbourne had sale room operators scrambling to purchase.

“As such, price gains in that centre were of a higher magnitude than the others and were quite often being transacted at 50 cents (+3.5pc) above the levels of the previous week for >18.5 micron.

“The general price gains in that sector were 35c/kg clean kg whilst <18.5 micron was generally 15 cents dearer,” he said.

“Crossbred wool was +15 cents and cards +5 cents.”

Mr Carmody said all the usual buyers returned to sale rooms this week after some took a week’s break for Chinese New Year.

“Their renewed participation certainly added to the positive atmosphere.

“Somewhat surprisingly, the largest trading export buyer operated to a seemingly toned-down strategy on the first days selling and all other traders set the pace, with China top makers in support,” he said.

“The final day saw all buyers back fully to action.”

Next week’s national offering is expected to increase, again buoyed by more sellers being attracted to the market. There are currently 41,243 bales rostered in Sydney, Melbourne and Fremantle.