Australian wool prices slip as fine merino demand weakens

Australia wool prices eased in Week 46 of May 2026 as weaker demand for fine and medium Merino fleece weighed on the market, while stronger interest in crossbred wool and carding types limited broader declines, according to AWI (Australian Wool Innovation) Commentary for week 46 (May 2026).

The Eastern Market Indicator (EMI) fell by 10 Australian cents to 1,876 ac/kg clean during the week. The US dollar-denominated EMI also declined by 10 US cents to 1,358 USc/kg clean. The Western Market Indicator (WMI) recorded the sharpest regional correction, dropping 22 ac/kg and 19 USc/kg.

Across the offering, Merino fleece wool softened, particularly in the medium Merino segment where buyer resistance became more evident. Fine Merino wool in the 16.5–19.0-micron range generally declined by 15–20 cents, while broader medium Merino categories between 19.5 and 21.0 microns fell by 25–30 cents across most selling centres. Despite the softer tone, trading remained selective rather than broadly weak.

Australia’s wool market eased in Week 46 of May 2026, with the Eastern Market Indicator falling 10 cents to 1,876 ac/kg clean as fine and medium Merino fleece prices weakened.
However, gains in crossbred wool and carding indicators helped limit overall losses.
Buyers remained selective, favouring lower-cost fibre blends amid manufacturing margin pressure and a stronger Australian dollar.

In contrast, crossbred wool ranging from 25–32 microns extended recent gains, rising by 20–25 cents in several categories. Southern 25-micron wool increased by as much as 50 cents during the week. Carding indicators also strengthened between 5 and 18 cents depending on the region, reflecting continued demand for lower-cost processing and blending wool.

Market analysts noted that buyers were not retreating from wool overall but were becoming increasingly selective at current fine wool price levels. Mills were seen shifting towards cheaper fibre blend categories such as crossbreds and cardings while resisting expensive fine Merino purchases, amid ongoing manufacturing margin pressure and efforts to manage input costs.

The stronger Australian dollar also added pressure on exporters and offshore buyers, contributing to cautious purchasing activity during the week.

Next week’s auction roster is expected to offer 31,334 bales, with Fremantle scheduled to sell on Tuesday only, while Sydney and Melbourne will conduct sales across Tuesday and Wednesday.

Fibre2Fashion News Desk (CG)