The Australian wool market continued its climb this week, with the EMI gaining 15 cents to close at 1,979 ac/kg. After a scheduled non-sale week, the Western Market Indicator (WMI) returned to the market and posted a strong 45-cent rise to finish at 2,170 ac/kg. Currency movements also provided support, with the Australian dollar weakening by 1.65 US cents over the selling week, improving purchasing power for offshore buyers. However, the lower exchange rate saw benchmark indicators decline in US dollar terms, with the EMI falling 22 US cents to 1,385 usc/kg and the WMI easing 4 US cents to 1,519 usc/kg.

Fine Merino fleece types (16.5–19.0µm) generally added 20–25 cents, while medium Merinos (19.5–21.0µm) again outperformed, recording gains of 35–40 cents across the selling centres. Crossbred wools (25–32µm) continued their recent positive trend, rising 10–15 cents, and Merino cardings improved by 25–30 cents.

The EMI now sits at its highest point since October 2018 and just 21 cents below the 2,000 ac/kg threshold, a level that has become increasingly achievable as gains broaden beyond the fine Merino sector. Strength in medium Merinos, crossbreds and cardings suggests buyer confidence is being driven by wider market fundamentals rather than isolated demand for a single wool type.

This week's offering was the smallest three-centre roster since 2020, highlighting the tightening supply conditions currently supporting the market. With Fremantle absent from next week's selling program, national volumes will fall further, keeping supply pressure firmly in buyers' focus. Combined with another week of low passed-in rates and limited wool available outside the auction system, the supply backdrop remains supportive and should help sustain competition for well-specified lots in the short term.

Next week, Sydney and Melbourne will operate on Tuesday and Wednesday, with 21,720 bales currently rostered for sale