Uruguayan Wool Export Value Jumps 32% as Global Prices Hit Five-Year Highs
Uruguayan wool export earnings have surged 32% year-to-date driven by a global pricing rally and robust demand from China and Italy, signaling strong pricing power for the agricultural sector despite minimal volume growth.
Uruguayan wool export earnings reached US$125 million in the first eight months of 2026, marking a 32% increase from the previous year. This financial growth occurred despite a marginal 3.4% rise in export volumes to 24.6 million kilos, indicating that the revenue surge is entirely price-driven.
China and Italy are the primary engines of this rally, accounting for 58% and 12% of total export value, respectively. The demand is heavily skewed toward higher-value processed goods, with tops and combed wool sliver generating US$47.4 million, a 45% increase in value. Italy and Germany are also major buyers of these semi-processed lines, taking 30% and 15% of tops value.
On the ground, the new annual shearing season opened in July with record expectations and firm local trading. Certified 18-micron Merino wool traded at US$10.30 per kilo on a greasy basis in early August, holding steady between US$9.50 and US$11.00 per kilo by mid-month. Coarser crossbred and Corriedale lots of 24 to 25 microns traded at a discount, referencing US$4.00 to US$4.50 per kilo.
This local strength mirrors a broader global commodity rally. The Australian Wool Exchange Eastern Market Indicator closed at US$13.11 per kilo clean in early August, sitting 61% above the same period in 2025 and marking the best pricing levels in five seasons.
The broader Uruguayan sheep sector, which includes both wool and meat, saw total export earnings grow by nearly 40%. The financial uplift is a stark contrast to the full-year 2025 totals, where the country shipped 42.3 million kilos for US$159.3 million. With the national flock standing at 4,752,400 sheep across 21,597 registered holders, producers are capitalizing on a highly favorable pricing environment.
While the 2026 figures remain partial through August, the trajectory suggests a highly profitable year for the sector. The contrast between the 15% drop in greasy wool volumes and a 39% jump in its value underscores the extreme pricing leverage currently held by Uruguayan exporters in the global market.
