Now that the season has come to an end and as the annual three-week recess begins, it’s an ideal time to reflect on the 2024–25 wool season. Limited wool volumes, firm grower pricing, and selective buyer appetite defined trading conditions in domestic and export markets.
AWEX reported 1,541,414 bales offered, down 13.4% year-on-year and well below the five-year average of approximately 1.78 million bales. Clean kilogram volumes dropped 15.5%, driven by reduced flock numbers, lighter fleece weights, and dry seasonal conditions in key regions, especially Victoria and South Australia.
Despite reduced offerings, weekly sales averaged 31,801 bales. The national pass-in rate lifted to 8.0%, up from 7.2% the season prior, reflecting softer demand. However, the Australian dollar averaged US65.0 cents, a 7% decline year on year, which provided crucial support for local prices. This weakening has continued into 2025, driven by President Trump’s return and renewed US exceptionalism policy decisions, which have strengthened the greenback. The weaker AUD has enhanced Australian wool’s global competitiveness, helped cushion prices from decline, and stabilised returns for exporters amid otherwise subdued sentiment.
The Eastern Market Indicator (EMI) averaged around 1,167 cents per kilogram, down 5.7% year-on-year and 9.5% below the five-year average. The 18 MPG averaged 1,600 cents for the season, down 3.1% year-on-year and 11% below its five-year average. The 21 MPG held up slightly better, averaging 1,326 cents, a fall of 1.4% and 6.5% below the five-year average. Meanwhile, the 28 MPG, representing crossbred wool, averaged 368 cents, down 5.1% on last season but slightly above its five-year average of 347 cents. The price spread between 18 and 21-micron wool narrowed to 222 cents from 274 cents last season, reflecting stronger demand for broader Merino types over the oversupplied superfine wool. Sydney’s northern market followed suit, with 21-micron wools showing firmer buyer competition and price stability.
The South African wool industry is driving an inclusive growth agenda
Western Australia experienced the sharpest production decline of all wool-producing states in 2024–25, with volumes down 18.8% year-on-year. This reflects dry conditions and land use changes as producers respond to shifting government policy. The Western Market Indicator (WMI) has hovered near 1,280 cents, around 8% below its five-year average, signalling softer sentiment despite steady demand for medium Merino at Fremantle auctions. Seller resistance remains firm, limiting clearance rates.
Auction turnover for 2024–25 reached $1.94 billion, down from $2.24 billion the previous season and below the five-year average of around $2.25 billion. The decline reflects a mix of tighter supply and softer prices.
A bright spot was the continued lift in certified wool premiums. As noted in Mecardo by Andrew Woods, RWS-accredited non-mulesed Merino fleece earned 5–9% premiums, with crossbred fleece achieving 10–20% more than equivalent lots. Demand for traceable, sustainable wool may be a defining feature of the market ahead.
AD ON-
South Africa’s 2025 wool season, running from August 2024 to June 2025, is poised for cautious optimism despite global and local challenges. As the world’s second-largest exporter of apparel-specific Merino wool, producing around 45 million kg annually and contributing 3% to global wool supply, the industry remains a vital economic driver, employing 40,000 people and generating roughly R5 billion in export revenue.
The season faces headwinds from a projected 2% global wool production decline, driven by farmers shifting to dual-purpose sheep breeds for meat and wool to offset rising costs like fuel and labor. South Africa’s wool clip, over 90% exported to markets like China, the Czech Republic, and Italy, is sensitive to global demand fluctuations and a strengthening Australian dollar, which influences prices as Australia sets the global benchmark.
Locally, the industry contends with biosecurity risks like foot-and-mouth disease, stock theft, and drought, though favorable La Niña rainfall forecasts for late 2024 to March 2025 offer hope for better grazing conditions. The Sustainable Cape Wools Standard, implemented in 2022, continues to enhance South Africa’s reputation for high-quality, environmentally sound wool, with rigorous on-farm classing and modern processing facilities.
Cape Wools SA, the industry’s representative body, is focusing on sustainability, biosecurity, and market expansion, supported by the Wool Trust’s research funding. Initiatives like the Karoo Winter Wool Festival and the National Wool Growers Association’s programs for communal farmers aim to boost production and market access, particularly for the 40,000 emerging farmers contributing 13% of the national clip.
Despite a 30% U.S. tariff impacting South African exports, ongoing government negotiations aim to secure better terms. With prices recovering from a 2020 low of R118.58/kg to R162/kg in 2021, and superfine wool fetching up to R300/kg in 2023, the industry is cautiously hopeful for stable demand and prices in 2025, driven by global trends toward natural fibers.
