Wool market rally stretches to six weeks

Sheep,In,Farm,Yard

The Australian wool market posted a sixth consecutive weekly rise, continuing the strong start to the 2025–26 season. The Eastern Market Indicator lifted 14¢ to 1,261¢. In US dollar terms, the EMI also rose 14¢ to 818, showing the gains were not simply currency driven. The pass-in rate fell to 5.4% from a national offering of 29,304 bales, with 27,722 bales sold to the trade

Merino fleece prices were firmer across all centres. In Sydney, the finer end held their ground, with 17 micron closing at 1,696¢, while in Melbourne and Fremantle medium microns led the gains, with 19 micron at 1,547¢ and 21 micron at 1,457¢. Crossbreds also added to the strength, with the southern 28 micron indicator finishing at 528¢ and the 30 micron closing at 440¢ in the north. Carding wools found support, ending the week 5 to 15¢ dearer across locks and crutchings, while the Southern MC indicator held steady near 761¢. Skirtings were generally firm, with low vegetable matter types attracting small premiums.

AWEX reported that the rally has been underpinned by tighter supply, with wet conditions slowing shearing and receivals in several regions. AWI noted that since the recess, end-user demand has broadened, with China, India, Italy, and the Czech Republic all active, reflecting the role of currency in shaping demand.

This week in Mecardo, Andrew Woods analysed recent offtake data and noted that seasonal conditions remain front of mind across the industry (see article here). He found that the Eastern sheep offtake is sitting at around 14%, which is slightly contractionary, while lamb offtake has eased from 36% to about 33% as recent rainfall provides some support for stabilisation. With combined offtake still above neutral levels, the flock’s recovery now hinges on whether spring rain arrives in time. For wool, a tightening flock points to reduced clip volumes ahead, reinforcing the current supply-side support for prices.

Next week

Looking ahead, 29,743 bales are rostered nationally next week. The test for the market will be whether strong demand can absorb the lift in volume without trimming recent gains.

Have any questions or comments?

We love to hear from you!

Click on graph to expand

Click on graph to expand

Click on graph to expand

Data sources:AWEX, AWI, Mecardo

Have any questions or comments?

We love to hear from you!
Wool
Wool

New year reset lifts wool market

The Australian wool market returned from the Christmas and New Year recess with a strong re-rating across all selling centres, as buyers returned from the

Read More »
Wool

Steady as she goes to wrap up 2025

The Australian wool market concluded the final sale week of 2025 in unspectacular fashion. The Eastern Market Indicator finished the week at 1541¢/kg, down 1¢,

Read More »
Wool

2025 in wool

With the last wool auction sales being held this week in Australia, and South Africa auctions already in recess, it is timely to look at

Read More »

Want market insights delivered straight to your inbox?

Sign up to the mailing list to get regular updates to new analysis and market outlooks

Independent analysis and outlook for wool, livestock and grain markets delivered to you as it’s published

Commodity conversations podcast cover image, a illustration of a sheep standing on a cow's back with grain either side
Listen to the podcast

Join the Mecardo team for the Commodity Conversations podcast, where we provide short weekly market recaps and longer conversations with guests to discuss the drivers and trends in livestock, grain and fibre markets.

156A7986_LQ-oxuut6zdthc8o09e5yux8merbgc55xv1zecznd47xo (2)
MEET THE TEAM

Our team of market analysts are recognised as leaders in Australian Ag market analysis, providing invaluable insights to help you navigate the ever-changing commodity landscape. 

SERVICES AND CAPABILITIES STATEMENT BROCHURE

We don’t just bring you the most up to date market insights. Find out more about Mecardo’s services including risk management advisory, modelling, benchmarking, research & consultancy.