February’s wool market update

Highlights for wool

• The Australian wool market has firmed to start 2025, with prices adjusting to the weaker Australian Dollar. The AWEX EMI is up 61 cents since the Christmas recess and finished week 32 at 1,215 c/kg. Prices are forecast to be relatively steady with participants expected to take a cautious approach in the current trade environment. Although the tighter supply on offer may see some support.
• The weaker Australian Dollar has been the main supporter of the market. The AUD fell 1.36 USc between the last selling week of 2024 and the return from the Christmas recess. This has resulted in the EMI in USc terms gain 30 USc, which is now mostly in line with this time last year. The strength of the Australian Dollar will have a major bearing on prices, as most of Australia’s wool is exported.
• The fine micron wools have all firmed since the recess, although to a lesser extent than the broader merino fleece types and the crossbred wools. The 18 MPG in Melbourne is up 2.3 per cent since the recess, while the 20 MPG is up 7.1 per cent and the 28 MPG is up 9.4 per cent.
• The market is waiting on further tariff announcements between China and the US. A trade war between China and the US has the potential to seriously impact the Chinese economy, which would limit upside in wool prices in 2025.

Joe Boyle

Agricultural Analyst

Joe is our Insights specialist for sheep and wool industries. He hails from a cropping and sheep farm in northwestern Victoria and has studied a Bachelor of Agriculture at the University of Melbourne.