Following a very strong performance at Australia’s first auction of the year, South African wool prices have reached their highest level so far in the 2025/26 season.
By Fredalette Uys
Both the Certified and All Merino indicators were 5% higher than at the first auction of the year, reaching R230.18/kg and R224.23/kg respectively at the 17th auction of the season. The Merino indicator was 32.8% higher than at the corresponding auction in the previous season.
According to Cape Wools’ market report, this increase followed the strong performance on the Australian markets, with better prices achieved despite a strengthening rand. A total of 98.1% of the local offering was sold.
There was good competition for certified wool across all micron categories, with certified wool achieving better prices overall. Price increases were recorded across all micron ranges.
This strong local performance followed an excellent first auction of the year in Australia, described as one of the best opening auctions in recent years. According to the Australian Wool Innovation market report, the Eastern Market Indicator (EMI) was 38.5% higher than at the same time last year, reaching its highest level since 15 January 2020. Price increases were also recorded in the Western Market Indicators (WMI).
“The opening auction of 2026 confirms a decisive shift in market sentiment, with buyer behaviour showing urgency rather than caution after the seasonal recess,” the report stated. Buyers competed strongly for well-prepared Merino wool, particularly in the main 18 to 21 micron category, “indicating confidence further down the value chain rather than short-term optimistic buying”.
According to the report, the significant increase in prices suggests that buyers are actively testing higher price levels to secure larger volumes, rather than the market merely reacting to a smaller supply. However, this view will be tested at the next auction, when a significantly larger Australian offering is expected. It will then become clear whether the market can maintain its current momentum.
The highest local price of R254/kg (fat price) was paid for a bale of certified 16 micron wool from Colloreton Farming, owned by Rowan Stretton of Molteno. The broker was BKB.
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