Global wool trade reopens with 109% growth in EMI

The global wool trade reopened with a 107 per cent growth in the Eastern Market Indicator (EMI) to 1,648¢/kg. This performance marks the strongest calendar-year opening since 1979, driven by a ‘spirited intent’ from buyers scrambling to secure dwindling supplies of high-micron fleece. With national offerings totaling 37,065 bales and a negligible pass-in rate of 1.3 per cent, the market signal is clear: demand for natural, high-performance fibers is vastly outstripping available inventory.

At the heart of this price rally is a severe drop in global production, particularly from Australia. Shorn wool output for the 2025/26 season is forecast to decline by 8.4 per cent to 256.6 million kg, following a double-digit decline in the previous year. We are seeing a structural shift where producers are moving toward lamb and meat production for higher per-hectare returns, noted an analyst from the Australian Wool Production Forecasting Committee. Drought conditions in Western Australia have specifically slashed regional test volumes by over 17 per cent, forcing spinners into aggressive bidding wars to maintain their manufacturing schedules.

While supply falls, the ‘Green-Performance’ trend is insulating the market from broader economic volatility. Luxury fashion houses are now prioritizing certified, non-mulesed wool, which currently commands a premium as it accounts for only 21 per cent of auction sales. This demand is particularly robust in the $4.85 billion Merino apparel segment, where 100 per cent wool base-layers are outperforming synthetics by 96 per cent in thermal buffering studies. Brands like Patagonia and Lululemon are increasingly integrating these traceable fibers into A/W 25/26 collections to meet the ESG mandates now required by major European and North American retail groups.

A global authority on wool, the Woolmark Company manages the world’s best-known textile fiber brand. The company operates in the premium Merino wool segment for luxury fashion, sportswear, and home textiles. It drives demand through ‘Sustainability 3.0’ and digital traceability certifications.