The Australian wool market continued to fall this week as buyers remained selective, and growers showed increasing resistance to lower prices. A total of 29,406 bales was offered nationally, up 1,739 bales on the previous week, with 25,647 bales sold.

The Eastern Market Indicator (EMI) fell 26 cents to close at 1,819 A¢/kg. Currency movements amplified the decline for overseas buyers, with the Australian dollar falling 1.25 US cents to 69.77 US cents and the EMI losing 41 US cents to 1,269 US¢/kg.

The majority of the fall occurred on Tuesday when the EMI lost 21 cents. Eastern selling centres fell 6–66 cents, while Fremantle recorded larger corrections of 9–104 cents as medium and broader types moved closer to Eastern price levels. Wednesday brought some consolidation, particularly in Melbourne where most Merino categories finished within seven cents of the previous day. Nevertheless, the EMI eased another five cents, extending its declining run to seven consecutive selling days.

Quality differentiation remained pronounced, with Sydney experiencing strong competition for the best-style and better-specified 19-micron and finer wool. Italian and Indian interests were active on preferred lots, while 18–18.5 micron held comparatively firm. Poorer-style and specification wool, particularly 19.5 micron and broader, continued to lose ground.

Seller resistance became an increasingly important feature of the sale, as the national pass-in rate reached 12.8%. This resistance was further evidenced across the Merino sector with fleece pass-ins reaching 16.8% in Melbourne and 20.0% in Fremantle.

Despite recent weakness, market fundamentals remain robust - characterised by the fact that while season-to-date offering is 9.1% below last year, turnover is $92 million higher at $594 million.  For growers this reinforces the value of presenting well-prepared wool into a market where buyers are competing for limited supply.

With around 29,561 bales forecast for Week 15, the market will again test whether reduced supply and seller resistance can stabilise prices against continued buyer selectivity.