Australian wool prices hit a three-year high in late September 2025 due to low supply and strong global demand.

Australian wool prices hit their highest levels in over three years in late September 2025, with the EMI and WMI surging due to low supply and strong demand. Merino and crossbred wool prices rose sharply, aided by historically low inventories, a 1.8% passed-in rate, and aggressive bidding by domestic traders. Mills in China and Europe are restocking, with Chinese mills increasingly using direct forward contracts, boosting competition. Demand is driven by recovering retail and uniform markets, and next week’s auction is expected to offer around 35,000 bales. While growers remain cautious, the tight supply chain and rising activity suggest a short-term bull market, though long-term stability depends on sustained demand.