This week the Australian wool market recorded its sharpest weekly adjustment of the season, as reduced buyer confidence met strong grower resistance to lower prices. The Eastern Market Indicator (EMI) fell 62 cents, or 3.5%, to 1,723 A¢/kg, with the EMI declining 40 US cents to 1,212 US¢/kg. A total of 27,934 bales was offered nationally, 2,042 more than the previous week, while the pass-in rate surged to 27.0%, the highest since May 2023. Despite the correction, the EMI remains 310 cents, or 21.9%, above the corresponding sale last year.

The majority of the decline occurred on Tuesday, when the EMI lost 44 cents. Eastern Merino Micron categories generally fell 30–80 cents, while Fremantle recorded losses of up to 117 cents as prices adjusted to previous Eastern movements and weakened further. Seller resistance was particularly pronounced in the West, where 51.3% of the offering and more than two-thirds of Merino fleece was passed in.

Better-style, well-measured fine wool continued to outperform lower-style, high-vegetable-matter and high mid-break descriptions. Standard Chinese topmakingwool bore the brunt of Tuesday’s decline. Processor competition increased on Wednesday as buyers sought to complete orders, with selected 17.5–18 micron better-style lots firm to dearer despite the generally weaker market.

Sellers continue to place a high value on their Merino fleece categories, where around one-third of the national offering was passed in compared with 27% across the market overall. The particularly high pass-in rates for Merino fleece suggest many growers remain reluctant to accept the recent sharp price correction, particularly for better-quality clips, and are prepared to retain wool rather than meet buyers at current levels. This seller discipline may effectively reduce available supply if prices remain under pressure.

Underlying supply remains constrained with Australian-sourced offerings 13.1% below last season. With around 28,400 bales forecast for next week, the combination of reduced supply and strong seller resistance may begin to moderate the correction, although renewed processor demand will be required for a more sustainable price recovery.