Another positive week for wool grower sellers at this week’s Australian auctions. Prices for most descriptions on offer were dearer with the standout this week being the carding sector. Once again, the stronger Australian dollar (AUD) against the major trading currencies was a major factor, but the local market defied even that normally depressive market pricing influence and spot prices headed higher.

Looking at the overall market situation, the movements in the carding wool area of the selection is significant. Cardings are the shorter stapled wools destined for woollen spun yarns – Locks, crutchings, lambs etc. History suggests that real and sustainable market gains are usually led by this wool sector.

Up until this point of time of the six month of solid price gains, the carding wool prices have largely been underdone compared to the rest of the wool type segments. The rally (+4.5%) of this week in carding wool prices may get local and overseas buyers inspired again and be prepared to follow that adage and further advances may ensue?

One of the major market determining factors remains the supply situation ex Australia. The test house figures are showing a seasonal 10% decline, but many of the wool reps/agents in the growing regions are reporting lower sheep numbers and lowering wool volumes heading into wool stores. Challenging climate conditions are cited. The most startling of figures was last month's 21% less wool tested year on year.

To put the loss of Australian wool production in perspective, over the past two years the volume of wool grown in Australia has fallen by the magnitude of the entire South African wool clip – our nearest global volume producer and competitor for Merino wool.

The ABS figures at the end of the first half of the 2025/26 season shows that China has extended its percentage market share to 88.4% of Australian exports by volume. India is responsible for 5.4% of our exports whilst Italy sits at 3.3% but worthwhile to note that Italy is the only destination that has imported more weight of wool compared to the previous year at the same time at +6.3%

Next week sees the market go into hibernation for a week as Australian industry has respected our largest customers’ request for a week off to celebrate their Spring festival and New Year period. Sales will resume Tuesday 24th February.