MERINO wool prices fell further at auctions this week, with only 28 micron-plus crossbred fleece values improving in Melbourne.

The Australian Wool Exchange said the market opened the 2026/27 wool selling season softly, with large losses recorded.

“There was a total of 32,259 bales available to the trade, 4543 bales more than the corresponding sale of the previous season.”

AWEX said the lower prices were met with seller resistance, with brokers passing in 16.9 percent of the bales offered.

AWEX said the market opened in the eastern centres and from the opening few lots it was immediately apparent that the prices on offer were well below those achieved at the close of the previous week.

“Main buyer focus was centred on good/best style wool, with vegetable matter less than 1pc and favourable additional measurement results.

“With these types in short supply, they were least affected by the falling market,” AWEX said.

“Lesser style, higher vegetable matter types were highly irregular.”

AWEX said the Merino fleece Micron Price Guides across the country dropped by between 10 and 93 cents.

“In a similar trend to the previous few series, strength in the broader crossbred section prevented a larger fall in the benchmark Eastern Market Indicator which lost 34 cents for the day, a drop of 1.7pc.

“Currency only played a minor role in the negative movements, when viewed in USD terms the EMI fell by US27 cents, a reduction of 2pc.”

On the second day of selling, AWEX said only Melbourne and Sydney were in operation and the market settled to a degree.

“Although there were further losses, they were not as large as the previous day, with some small gains recoded.

“The EMI dropped a further 5 cents, closing the series at 1904 cents/kg clean.”

Although the market has had negative results over the previous two selling series, it is worth noting that the EMI is still well above where it was twelve months ago, AWEX said.

“At the corresponding sale of the previous season the EMI was 1208 cents, meaning it is currently 696 cents higher.”

Market is consolidating – AWI

Australian Wool Innovation said market gave back some of its recent gains.

“The pattern was similar to the previous week, with most of the losses recorded on the first day of sales.

“Despite another fall in the Australian dollar, the currency movement was not enough to generate stronger buying support in the sale rooms.”

In the Western region, where sales were held on one day only, losses were also concentrated, with the market finishing 57 cents lower at 2072 c/kg clean, or US1427 c/kg, down US43 cents.

“Across the catalogue, fine Merino types came under heavy pressure, with most indicators easing by around 60 to 65 cents across the selling centres.

“Medium also weakened, generally falling by 55 to 60 cents,” AWI said.

“Crossbred types performed better, remaining mostly unchanged to slightly dearer, with some indicators gaining around 5 cents.

“Merino cardings were also softer, easing by around 20 to 25 cents.”

AWI said the market looks to be consolidating after its recent run, with price pressure coming from higher new-season offerings, selective buying and greater discounts on lower-specification wools.

“Better style, low-VM types continue to find support, but buyers are clearly being more selective across the broader catalogue.

“As a result, upside may remain limited until spring brings a larger selection of fresh, higher-yielding wool to the market,” AWI said.

AWTA key testing data June update

The monthly comparisons of total weight tested for June 2026 compared with June 2025 is -2.35pc.

The progressive comparison of total weight tested for July 2025 to June 2026 compared with the same period last season is now -8.03pc.

AWTA Ltd has tested 271.7 mkg (million kilograms) this season compared with 295.4 mkg for the equivalent period last season.

Source – AWEX, AWI, AWTA.