The Australian wool market slipped this week, continuing last week’s retreat despite the broader bullish trend seen over recent months.​

The Eastern Market Indicator (EMI) closed at 1,456 ac/clean kg, down 61 cents, while the Western Indicator fell 68 cents to 1,588, the US-dollar EMI eased to 949. The Australian dollar slipped slightly to 65.15 US cents, softening by 0.85 cents, which provided only limited support to exporters.

Price pressure was most pronounced in finer Merino fleece types, which dropped 60–100 cents, while 19 micron and broader categories recorded more moderate falls of 60-80 cents. Cardings slipped by around 25 cents, and crossbred wools eased 40 cents. ​

This week’s offerings are down 3.3% from last year’s levels. The EMI, however, sits 28% higher than the same week last season, reflecting the broader upward trend in value and overall buyer demand despite recent corrections.

 A 5.3% increase in the passed-in rate to 24.6% highlights grower resistance to lower prices, with nearly a quarter of wool offered withdrawn from sale as sellers hold firm against softer buyer demand. This is all set against the context of historic price spikes from the past 2 months. 

The elevated pass-in rate suggests a widening gap between buyer bids and grower expectations, typical of a market in transition.​

AWTA data shows a 16% reduction in bales tested compared to last season, signalling a tightening supply outlook heading into summer. The combination of reduced supply and selective buying indicates the market is seeking a new level of equilibrium.​

Market direction will likely hinge on renewed demand signals from China and Europe over the coming weeks, with exporter confidence and currency movements also key factors to watch as the industry navigates this consolidation phase.​

Next week’s sale is expected to offer 40,585 bales across all three centres on the Tuesday/Wednesday selling roster. ​

​