Since trading steadily around the 1200 ac mark in May and June, the Eastern Australian Market Indicator (EMI) has been gradually climbing over the past two months, fortunately in a dearer trend. This week saw an acceleration, with a healthy 2.4 per cent or 30ac clean kg added to that leading indicator of wool pricing. The EMI now sits at its highest weekly closing level since early May 2023, the Australian Wool Innovation (AWI) said in its commentary for week 10 of the current wool marketing season.
Trade feedback suggests that the environment and trading conditions are “starting to feel right again”. This applies to both prices and sentiment. Many participants compare the current level of confidence to March 2025, before the United States government’s tariff decisions had an immediate and heavy impact on global trade, the AWI commentary added.
Perhaps the larger factor—beyond the seemingly improving demand side—is supply. Traders and indent buyers report that lower supply is starting to take effect with mills and overseas buyers. The consensus is that “everyone is behind in their purchasing” and there “just won’t be enough wool to go around if mills want to run anywhere near their optimum capacity”.
Next week, just over 28,000 bales will be offered for sale.
ALCHEMPro News Desk (KD)
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