Wool market update

The AWEX Eastern Market Indicator (AWEX EMI) surged 109 cents higher this week as the wool market’s momentum continued to build. 

The EMI broke through the 1400 cent mark to close at 1453 cents, its highest point since June 2022. 

The weekly rise was the largest in six years and extended the rally to 10 straight weeks, equalling the longest unbeaten run (weekly) since 1987. 

National offerings remained steady with 29,773 bales put to auction. 

Prices lifted sharply from the opening lot on Tuesday and continued to climb as buyers chased quantity. By the close of the day, the market was generally 100 cents stronger than the previous week. This drove the EMI 72 cents higher in its biggest single day gain since January 2021. 

Wednesday’s sale followed the same pattern, beginning firmly and strengthening further as the day wore on. By the end of trade it marked the 18th consecutive day of increases, with Merino fleece adding another 50 cents.  

The results of the week now have Fine Merino types (19 microns and finer) sitting at two-year highs, while broader Merinos are at 5 year highs. 

Skirtings followed suit, lifting between 100 and 150 cents clean for the series. Crossbreds also enjoyed a strong week, closing 60 to 80 cents higher across both days to reach five year highs. Merino Cardings were more subdued, edging 10 cents higher. Sellers were keen to meet the rally, pushing the clearance rate to its strongest level in seven years. 

Looking ahead, offerings are forecast to lift to 35,260 bales across Sydney, Melbourne and Fremantle next week.