Where is the wool market at?

With signs of the market settling and a higher trading range forming, here are the key points shaping the current wool landscape.  

Market performance  

The Australian Eastern Market Indicator (EMI) has lifted 205 ac/clean since the start of the season – an increase of 17%. Over 12 months, the EMI is up 288 ac/clean kg (25.6%). 

After the spring rally, conditions have steadied. Broader Merino types (19–30 micron (µm)) remain solid, while finer microns (<18 µm) have eased slightly.  

Crossbred wool continues its strong run with year-on-year gains of 16–43%. Auction pass-in rates sit at about 6%.  

Production and clip trends 

Comparing October 2025 with October 2024, total weight tested is up 5.1%. But when looking at the season to date (July to October 2025), volumes are 9.2% lower than the same period last year.  

Agricultural, Horticultural and Materials Testing (AWTA Ltd) has tested 90.3 million kilograms (mkg) of wool so far this season. Core test volumes rose 5.5% in October compared with the same month in 2024. This rebound is likely due to stored wool coming onto the market after a 33% price rise from mid-2025 to 1 October, as well as shearing dates being brought forward in dry conditions.  

State-by-state trends:  

• NSW, VIC and SA: Production of mid-micron wool (17.5–22.5 µm) is down. Finer wool (<17.5 µm) is stable. 

• WA: Clips are trending broader, likely linked to more producers shifting to dual-purpose enterprises.  

• Tasmania: a slight increase in fine wool production.  

The Australian Wool Production Forecasting Committee (AWPFC) estimates shorn wool production for 2024/25 at 280.1 Mkg greasy, which is 11.8% lower than 2023/24. Ongoing low rainfall in major wool regions continues to affect wool production and sheep numbers.  

Prices, exports and trade  

Comparing October year-on-year averages: 

• fine wools (16.5–19 µm) are up 26% 

• medium wools (19.5–24 µm) are up 33.3%  

• crossbred wools (25–32 µm) have jumped 64%.  

The October price rebound and later correction are considered healthy signs, helping to rebuild confidence across the market. 

China remains the main export destination with 86% of volume (down 11.7%) and 84% of value (down 8.7%).  

India now holds 5.3% of export value and 5.4% of volume. Italy accounts for 2.4% of export volume and 4.3% of value. Czechia’s value share is up 9.7% year-on-year.  

A softer AUD has improved export competitiveness, though currency swings still affect buyer confidence.  

Industry confidence, insights and outlook  

A strong Merino ram-selling season points to producer confidence in genetics and profitability. Merino wool continues to stack up well against other farm enterprises – especially when with meat returns are included.  

Tight supply and steady demand may support further gains in the Australian market, even against broader despite economic and global uncertainties.