The Australian wool market eased this week as the largest national offering in five weeks tested buyer appetite. A total of 33,265 bales was offered, 7,030 more than the previous series, with 30,137 bales sold and the pass-in rate rising to 9.4%.

The Eastern Market Indicator (EMI) fell 17 cents, to close at 1,803 A¢/kg, while the EMI declined seven cents in US-dollar terms to 1,262 US¢/kg.

The market opened across all three centres on Tuesday, dropping seven cents. Although fine Merino wool and better-style, well-measured descriptions continued to attract solid competition. On Wednesday, Melbourne and Sydney continued the softer trend, with the EMI losing a further 10 cents.

The designated Sydney superfine sale highlighted the increasingly pronounced quality differentiation. Almost 18,900 bales of 19.5 micron and finer wool were offered nationally, with better style and specification continuing to command premiums. Strong competition was seen from the opening lot, with traders again leading the buying and Chinese processors following. Importantly, even poorer-specification superfine wool was not neglected, suggesting reasonable underlying demand despite the larger catalogue.

AWEX’s indicative Woolgrower Returns show that a 185 kg bale of 17-micron wool is currently worth around $3,103, up $618 or 25% from $2,485 in Week 16 last year, while 19-micron has risen from $2,107 to $2,679, an increase of $572 or 27%. Returns for 21-micron wool have increased more moderately, from $1,985 to $2,185 (+10%), while the indicative value of a 28-micron bale has risen from $797 to $914 (+15%).

The comparison highlights that the strongest benefit has flowed to fine and superfine Merino producers, consistent with the widening premiums evident across the market.

With the Week 17 offering forecast to fall to around 26,883 bales, reduced supply may again provide some price support, although buyer selectivity and the widening premiums for quality and specification are likely to remain key market features.