Australian wool market extends rally as prices firm across all microns

The Eastern Market Indicator (EMI) continued its upward trajectory, closing at 1,542 ac/kg, marking a 35 per cent year-on-year increase. In US dollar terms, the EMI finished at 1,023 usc/kg, up 40 per cent compared with the same period last year. The Western Market Indicator (WMI) also recorded a solid performance, lifting 36 cents to 1,712 ac/kg, equivalent to 1,137 usc/kg, the Australian Wool Innovation (AWI) said in its commentary for week 24 of the current wool marketing season.

Price gains were broad-based across micron categories. Fine wools in the 16.5–19 micron range rose by an average of around 30 cents, while medium microns between 19.5 and 22 also firmed by about 30 cents. The strongest gains were seen in the 17–18 micron segment, which advanced by an average of 30–35 cents over the week. Crossbred wools (25–32 microns) posted more modest improvements of around 10 cents, while the cardings market edged higher by 15 cents.

Currency movements provided a mixed backdrop. The Australian dollar softened slightly to 0.664 USD after recent gains but maintained a firm underlying tone. Support continues to come from steady domestic data and a resilient labour market, although softer GDP growth and inflation running at 3.8 per cent have kept the Reserve Bank of Australia in a hawkish hold stance, the AWI commentary added.

Supply rose significantly during the week, with national offerings increasing to 40,795 bales, up 23 per cent from the previous sale. This marked one of the few instances this season where volumes exceeded the 40,000-bale level. Despite the larger catalogue, the market absorbed the additional supply comfortably, with the clearance rate holding at a strong 94 per cent, signalling robust underlying demand and buyer willingness to operate at higher price levels.

Looking ahead, all three selling centres will operate on a Tuesday–Wednesday roster next week, with the national offering expected at 40,509 bales. This will be the final sale before the Christmas recess, with current indicators suggesting the market is carrying solid momentum into the seasonal break.

ALCHEMPro News Desk (KD)