Australian wool market has seen ten consecutive weeks of strong increases
The Australian wool market closed another week with an upward trend. The Eastern Market Indicator (EMI) in US dollars rose 7.1%, reaching US$9.61 per kilo on a clean basis. In local currency, the increase was 8.1%, reaching AU$14.53 per kilo.
This is the tenth consecutive week of increases for the indicator in Australian dollars, the longest streak since 1987. Furthermore, the value reached is the highest since June 2022. In US dollars, the EMI reached its highest level since February 2023.
General increases in different types of wool
The Australian wool market showed increases in several categories. Fine Merino wool (19 microns or less) reached its highest price in two years. Larger diameter Merino wool reached prices not seen in the past five years.
Skirting also had a strong week, with increases of between 100 and 150 Australian cents per clean kilo. Meanwhile, crossbred wools increased between 60 and 80 cents on both days, also reaching five-year highs.
The available supply contributed to this situation. During the week, 29,773 bales were presented, of which 98.2% were sold. Sellers took advantage of the firm market, raising the sales completion rate to its highest level in seven years.
Factors that explain the moment
The main drivers include historically low inventories and rising international demand. The flow of wool along the supply chain has become more agile, strengthening purchasing pressure.
According to Australian Wool Innovation (AWI), last weekend's Nanjing Wool Market conference was one of the most successful since 2018, opening up new business opportunities.
Europe, one of the key destinations, relies in part on tops and yarns processed in China. In turn, supplies to that consumer market are concentrated on batches certified under the Responsible Wool Standard (RWS) or from non-mulesed . The preference for these differentiated wools is expected to continue to grow.
Offer scheduled for next week
Looking ahead to next week, a larger supply is expected: 35,260 bales distributed across three sales centers—Sydney, Melbourne, and Fremantle—although the latter will only be open on Tuesday .
Analysts warn that if demand remains stable, the upward trend could continue. However, the evolution of supply will be key to measuring the market's strength .
The Australian wool market, with its ten-week upward trend, is consolidating its position as a global benchmark. The performance of fine Merino wool, crosses, and cuts confirms that the shortage of product and increased buying interest create a favorable environment for producers.
The Australian wool market not only reflects rising prices, but also shows signs of how global demand is reshaping. Analysts point out that low inventories in China and Europe , along with the search for certified and sustainable fibers, are factors driving up prices. The demand for certifications such as RWS or non-mulesed is a response to consumers who are more attentive to the origin and welfare of animals.
For Uruguayan and South American producers, this trend is a key reference: many local lots are directly compared to Australian ones in terms of quality and destination. Therefore, variations in Sydney, Melbourne, or Fremantle ultimately impact the regional market. With prices at record levels and sales volumes exceeding 98%, attention will be focused on the next offering of more than 35,000 bales, which will test whether buying interest sustains the current positive trend.
