AUSTRALIA’S wool auction market closed lower this week, with weakness recorded across nearly all sectors of the market.

The Australian Wool Exchange said Fremantle did not hold a sale in this series, with only Melbourne and Sydney in operation the national quantity fell.

“There was a total of 21,230 bales available to the trade, 7730 bales less than the previous series.

“When compared to the previous season, the national quantity continues to track higher,” AWEX said.

“There have been 1835 more bales offered so far in the new season, an increase of 2.3 percent.

“On the opening day the market had mixed results,” AWEX said.

“Strong demand on wool possessing favourable additional measurement results helped these types to continue to attract premiums.”

AWEX said the price movements in the Micron Price Guides (MPGs) for Merino fleece ranged between minus 18 and plus 19 cents.

“The falls recorded in the 17.5 micron and finer range.

“The benchmark Eastern Market Indicator (EMI) fell by the barest of margins, dropping one cent for the day.”

AWEX said the currency fluctuations played little part in the market movements.

“In USD terms the EMI fell by US2 cents.

“The second day of selling the market performed very much like the first. Only small price movements were recorded,” AWEX said.

“These movements were reflected in the Merino fleece MPGs, which ranged between plus 7 and minus 15 cents.

“The EMI dropped by 7 cents.
AWEX said the EMI closed the week at 1901 cents/kg clean, down 8 cents. Brtokers passed in 8.5pc of the bale offering.

“With only three selling series conducted for the 2026/27 wool selling season, the total dollar amount of wool sold at auction is tracking well above the previous season.

“There has already been 160 million dollars’ worth of wool sold, this is $54 million dollars more than the previous season.”

Next week Fremantle returns to the roster, bolstering the national offering for the final sale before the three-week mid-year recess. There are currently 32,397 bales expected to be offered nationally.

Buyers remain selective – AWI

Australian Wool Innovation said the passed-in rate of 8.5pc pointed to some seller resistance despite the relatively small movement in prices.

“Fine Merino results were mixed across the two selling centres.

“The finer end of the market generally eased, while selected 18 to 19 micron types in Sydney recorded modest gains,” AWI said.

“Medium Merinos were mostly steady to slightly softer.

“Crossbreds also lost ground, particularly in Melbourne, while Merino cardings declined in both centres.”

AWI said the uneven result suggests the market remains selective rather than broadly weak.

“Better-measured, well-prepared wool continued to attract support, while lower-specification lots faced greater price pressure.

“With the EMI holding close to 1900 cents, the market appears to be consolidating near current levels, although buyer confidence remains sensitive to the quality and volume of wool available,” AWI said.

“The relatively even spread of purchases among the leading Merino buyers suggests demand was not dependent on a single dominant operator, although competition remained disciplined.

“With no Western sale and a much smaller national catalogue, this week’s stability should be viewed cautiously, as the result may reflect reduced supply as much as improved demand,”AWI said.

“Next week will provide a stronger test of market support ahead of the three-week mid-year recess, with 32,397 bales currently forecast nationally.

“With Fremantle on Tuesday, Melbourne and Sydney across Tuesday and Wednesday,” AWI said.

“The return of all three selling centres and the larger offering should give a clearer indication of whether buyers are prepared to maintain current price levels.”

Sources – AWEX, AWI.