Australian wool prices declined this week, with the Eastern Market Indicator (EMI) dropping 27 cents to close at 1,724 c/kg, as buyer caution and rising logistics costs weighed on the market. In US dollar terms, the EMI fell 43 cents to 1,202 c/kg due to currency movements, although it remains 38.5 per cent higher in AUD and 53.1 per cent higher higher in USD year-on-year.

“The price weakness was most evident in the 18.5–21 micron Merino fleece range, particularly in Southern and Western regions, where declines of 40–60 cents were recorded. Crossbred wool prices also eased, while the Northern market showed some firmness in 20–21 microns,” said Australian Wool Innovation (AWI) in its week 39 commentary.

Australian wool prices declined this week, with the Eastern Market Indicator (EMI) falling 27 cents to 1,724 c/kg amid buyer caution and rising logistics costs.
Weakness was led by Merino fleece, while crossbreds also eased.
Strong auction volumes and increased supply reduced competition, signalling a pause after sustained price gains.

Market sentiment was impacted by increased supply, with offerings nearing 40,000 bales. Pass-in rates stood at 9 per cent nationally and over 13 per cent in the West, signalling growing seller resistance. Despite lower annual production, supply levels remain elevated, partly supported by broker and farm-held stocks, the AWI commentary noted.

Rising freight costs linked to Middle East tensions and sustained supply are expected to test market stability. Around 37,815 bales are scheduled for sale next week, the AWI commentary added.

Fibre2Fashion News Desk (CG)

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