Slow and steady start to the new season

Sheep running in a yard

The Australian wool market opened the 2025/26 season on a steady note, with the Eastern Market Indicator (EMI) rising 1 cent to close at 1,208 cents per kilogram. While the opening sale is typically one of the largest of the year, as growers look to sell into the new financial year, this season was different. Only 27,716 bales were offered and 25,948 sold nationally, marking the smallest opening sale since AWEX records began in 1997.

Regional indicators were mixed. The Northern Indicator lifted 4 cents to 1,234 cents per kilogram clean, while the Southern Indicator slipped 1 cent to 1,191 cents, and the Western Indicator eased 2 cents to 1,352 cents. The national pass-in rate fell to 6.4%.

Merino fleece MPGs showed mixed trends. Sydney’s 17.5 MPG rose 16 cents to 1,633 cents, and the 20 MPG added 17 cents on strong demand. In Melbourne, the 18 MPG slipped to 1,588 cents, while the 19.5 micron MPG fell more sharply, down 30 cents to 1,444 cents. Fremantle saw similar weakness in finer types but steadier prices for broader microns.

Crossbred wool continued its positive run from last season, posting gains of 16 to 25 cents across most microns. Melbourne saw consistent price lifts, while Sydney’s crossbreds lifted by 10 to 15 cents early in the week before holding steady.

Cardings also strengthened, particularly in Fremantle, where the Merino Carding Indicator rose 19 cents. Skirtings largely mirrored fleece trends, with AWEX noting that low vegetable matter types attracted premiums, while higher vegetable matter lines faced selective buying.

The Australian dollar traded stronger this week, around 65.8 US cents, supported by a softer US dollar as markets reassessed the timing of potential US Federal Reserve interest rate cuts. The stronger currency pushed the EMI 11 cents higher in US dollar terms, closing the week at 795 US cents per kilogram, providing some price stability for exporters.

This week in Mecardo, Andrew Woods looked at RWS Premiums (see article here). He found that they have recovered to around 100 cents per kilogram clean for both Merino and crossbred types following subdued levels in the previous year. He highlighted that these premiums remain volatile, which may influence the future growth of RWS-accredited wool supply.

The week ahead….

Looking ahead, 29,015 bales are rostered for sale next week, as auctions return to their usual selling schedule.

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Data sources: AWEX, AWI, Mecardo

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