Wool market update

The Australian wool market held the final sale before the annual three week mid year recess this week. This sale has the potential to behave in one of two ways. 

Buyers needing to fill orders, have this final auction buying opportunity in which to do so. This can result in pressure on specific pockets of the market, as buyers compete over similar lots needed to complete their export orders. This in turn can lead to an upward turn in the market. 

The potential downside of the break, is that some buyers are reluctant to start new orders, knowing that filling the order before the break could be problematic. 

In welcome news to woolgrowers, it was the first scenario that transpired this week.

With 37,946 bales available to the trade, competition was often fierce across specific wool types, as buyers fought to complete orders needed for immediate shipment. Fremantle selling only on the first day, was yet to enjoy the rises on offer in the previous series. 

The Western region heads into the recess on a buoyant note after a strong finish. The Western Micron Price Guides (MPGs) closed between 19 and 31 cents higher. 

In the East the market pushed further into positive territory, adding further gains to those experienced over the previous few weeks. The Eastern MPGs increased by between 5 and 38 cents. The benchmark Eastern Market Indicator (EMI) added 18 cents for the week, closing at 1,239 cents. 

The market continues to enjoy a strong start to the 2025/26 wool selling season. The EMI has risen across all four selling series of the new season. 

In further positive news, although playing its part, currency was not the driving influence on the market. The EMI rose by a similar amount in USD terms. 

The market is now in recess. Sales will resume week beginning Monday 18 August.