This week saw the successive run of gains achieved by the Australian wool market come to an end, recording losses across all three selling centres. The eastern markets held up better through the week of sales, with the EMI losing 32 ac/kg while the WMI fell 69 ac/kg, highlighting comparatively weaker conditions in Fremantle.

The losses were felt most heavily in the medium Merino wools across both the east and west, easing 70 to 75 cents in the east and 85 to 90 cents in the west. Finer types fell 45 to 60 cents across all three centres. Crossbreds also eased, losing 25 to 30 cents. Cardings saw a divergence, with the east holding steady to 5 cents dearer, while Fremantle recorded a sharper fall of around 45 cents.

The consistency of the falls across Merino fleece suggest a shift in buyer behaviour this week. Rather than selective weakness, the declines point to a broader pullback in bidding intensity.

This follows a strong period of gains post the Chinese New Year break, with much of the recent purchasing still moving through the processing and manufacturing pipeline. The caution evident this week reflects tightening margins further down the supply chain, as exporters and processors adjust to higher input costs. Increased offerings have also reduced buyer urgency, contributing to softer price competition, while a firmer Australian dollar is adding further pressure to already constrained export margins.

Despite the overall softer tone, buyer interest remained more evident for well-prepared, lower-risk types, highlighting a more selective approach to purchasing and continued underlying demand for quality.

This week’s result appears to reflect the market testing short-term resistance and consolidating recent gains, rather than signalling a broader shift in underlying demand.

The coming weeks of sales will look to provide clearer direction on the markets ability to absorb market conditions and break through current resistance.

Next weeks of sales sees all three auctions operate on the Tuesday-Wednesday selling schedule with 40,909 bales of Australian wool to be offered.