Australian Wool Market Report Commentary from AWI

The Australian wool market eased again this week (31 October), with the Eastern Market Indicator (EMI) falling 14 cents to 1,413 AUD/kg clean. In contrast, the EMI in US dollar terms edged up 9 cents to 933, supported by a firmer Australian dollar.​

Auction volumes contracted, with 31,056 bales offered—down 7.9% from the previous week— while the national pass-in rate dipped slightly to 12.1%. Price movements varied across microns: most Merino and crossbred indicators weakened, reflecting softer demand for finer fibres, while 20-, 21-, and 28-micron types posted some modest gains, signalling selective interest in broader wools.​

Broader market dynamics continue to favour medium and coarse Merino, with 19–30-micron categories trading near five-year highs. Conversely, finer types remain under pressure, with current season prices for 16-18.5 microns and below sitting below long- term averages. This imbalance reflects an oversupply of fine Merino wool and a shortage of broader types, seeing a reduced premium available for the finer part of the market. ​

Year on year trends still see supportive prices with 25.6% increase on the EMI while the season offerings continue to decline with a 4.1% decline this week year on year. ​

As the Australian dollar strengthens on optimism around a potential US–China trade deal and firmer inflation data reduces the likelihood of an RBA rate cut next week, currency movements could weigh on buyer sentiment. A stronger AUD may dampen demand in auction rooms as the market continues to feel out a comfortable level. ​

Next week’s national wool offering is forecast at 34,217 bales. Due to the Melbourne Cup public holiday on Tuesday, sales will be held on Wednesday and Thursday in Sydney and Melbourne, and Wednesday only in Fremantle.

Source: AWI