Merino demand drives Australian wool market higher, EMI up 16 cents

Australia’s wool market extended its positive momentum this week, with the Eastern Market Indicator (EMI) rising by 16 cents as stronger demand for Merino fleece supported prices across the eastern selling centres. Sydney and Melbourne recorded firm gains on the opening day before easing slightly later in the week, while Fremantle saw limited support.

“The Northern Indicator closed 26 cents higher, and the Southern Indicator gained 8 cents. Despite a stronger Australian dollar creating headwinds for exporters, the market remained resilient, with the EMI and Western Market Indicator (WMI) rising by 35 US cents and 25 US cents respectively in US dollar terms,” the Australian Wool Innovation (AWI) Limited said in its Commentary for week 37 of the current Australian wool marketing season.

Australia’s wool market remained firm as strong demand for fine Merino fleece supported price gains despite currency headwinds.
Higher offerings and a slightly lower clearance rate suggest cautious seller participation, while continued premiums for quality wool indicate steady global demand.
Market direction may depend on currency movements and export demand in coming weeks.

Eastern selling centres outperformed Fremantle across most Merino fleece categories, reflecting stronger buyer competition across the larger catalogues. Finer Merino fleece in the eastern markets rose by 30–35 cents, while medium Merino fleece increased by 10–15 cents. In contrast, prices in Fremantle eased slightly, with finer fleece slipping 5–10 cents and medium types falling 10–15 cents, the AWI commentary noted.

Merino cardings led the market, gaining 25–30 cents across all three selling centres. Crossbred wool, however, continued to weaken, declining by around 15–20 cents.

Premiums remained strongest for well-styled fleece with high tensile strength and low vegetable matter content.

A total of 45,476 bales were offered during the week as sellers responded to firm market conditions. The clearance rate eased to 92.8 per cent, indicating some seller resistance to current price levels despite steady demand.

Next week’s national offering is expected to total 42,953 bales, with all three centres returning to the regular Tuesday–Wednesday selling schedule.

Fibre2Fashion News Desk (CG)