Australian wool market maintains ten consecutive weeks of strong historical increases

By Jesus Vargas

Australian wool market accumulates ten consecutive weeks of strong increases

He Australian wool market closed another week with an upward trend. The Eastern Market Indicator (EMI) in US dollars grew 7.1%, reaching US.61 per kilo clean base. In local currency, the increase was 8.1%, reaching AU.53 per kilo.

This is the tenth consecutive week of increases in the indicator in Australian dollars, the longest streak since 1987. In addition, the value reached is the highest since June 2022. In US dollars, the EMI reached its highest level since February 2023.

Generalized increases in different types of wool

The Australian wool market showed increases in several categories. Fine Merino wools (19 microns or less) hit their highest price in two years. The largest diameter Merino reached values ​​not recorded in the last five years.

Skirtings also had a strong week, with increases of between 100 and 150 Australian cents per clean kilo. For its part, the wool of the Cruza sector (crossbreds) increased between 60 and 80 cents in both days, also reaching five-year highs.

The available supply contributed to this scenario. During the week, 29,773 bales were presented, of which 98.2% were sold. Sellers took advantage of the firmness of the market, raising the rate of completed sales by highest level in seven years.

Factors that explain the moment

Among the main drivers are historically low inventories and rising international demand. The flow of wool along the supply chain became more streamlined, strengthening buying pressure.

According to Australian Wool Innovation (AWI), the “Nanjing Wool Market” conference held last weekend was one of the most favorable since 2018, opening up new business opportunities.

Europe, one of the key destinations, depends partly on tops and yarns processed in China. In turn, the supply to this consumer market is concentrated in batches certified RWS (Responsible Wool Standard) or coming from systems non mulesed. The preference for these differentiated wools is expected to continue increasing.

Offer scheduled for next week

Looking ahead to next week, a larger supply is expected: 35,260 bales distributed in the three sales centers - Sydney, Melbourne and Fremantle - although the latter will be active only tuesday.

Analysts warn that if demand holds, the upward trend could continue. However, the evolution of the offer will be key to measure market strength.

The Australian wool market, with its ten-week upward sequence, is consolidating itself as a global reference. The behavior of the fine Merino, the crosses and the cuts confirms that the scarcity of product and the buyer interest generate a favorable scenario for producers.

He Australian wool market It not only reflects rising prices, it also shows signs of how global demand is being reconfigured. Analysts emphasize that low inventories in China and Europe, along with the search for certified and sustainable fibers, are factors that drive values. The requirement for certifications such as RWS or non mulesed responds to consumers more attentive to the origin and animal welfare.

For Uruguayan and South American producers, this trend is a key reference: many local lots are directly compared to Australian ones in quality and destination. For this reason, variations in Sydney, Melbourne or Fremantle end up having an impact on the regional market. With prices at maximum levels and a sales volume of over 98%, attention will be focused on next offer of more than 35 thousand bales, which will test whether buying interest sustains the current positive streak.