Australian wool sale – 27 November – AWI Commentary

The Australian wool market settled this week following successive weeks of price gains, with the EMI closing at 1504 AUC (978 USC), down 10 and 5 cents respectively. The WMI found support, finishing at 1665 AUC with weekly gains of 4 AUC.

Fine wools (16.5-19μ) faced renewed pressure this week, averaging losses of 14 cents. The decline was concentrated at the finer end, where 16.5μ and 17.5μ categories shed 15 and 24 cents respectively.

Medium types (19-22μ) averaged losses of 10 cents, while Crossbred wools (25-32μ) experienced similar weakness, also down 10 cents. Cardings bucked the trend, gaining 7 cents this week. Merino skirtings were the standout performer, surging 40 cents.

This week saw offerings increase 32.2% as recent favourable pricing combined with seasonal shearing patterns pushed more wool through the auction rooms. Despite the surge in volume, the market held firm—a positive sign for growers heading into the new year.

The clearance rate eased to 90.4%, down 6% from last week’s sales, reflecting the combination of cooling prices and heavier offerings.

The Australian Dollar strengthened this week, reclaiming 0.6500 as gradually improving signals from China and a softer USD backdrop provided support. China’s 4.0% GDP growth through Q3 and 2.9% retail sales gain in October point to a slow but increasing recovery, supporting demand fundamentals for Australian wool exports.

It’s worth reflecting on where the market stands compared to this time last year. Fine wools have climbed 25% since November 2024, medium wools 35%, and crossbreds have jumped an impressive 46%. The broader market tells the same story, with the EMI up 31.5% year-on-year. These gains reflect the wider market picture of reduced Australian wool supply combined with improving global demand signals.

Looking ahead to next week’s sales, 37,581 bales of Australian wool will move through all three selling centres. Sydney and Melbourne are selling on Tuesday-Wednesday, Fremantle on Tuesday only.

Source: AWI