The Australian wool market recorded its sharpest weekly fall of the 2026 season in sales held on 27 and 28 October, as weaker buying confidence met resistance from growers unwilling to accept lower bids.
According to the Australian Wool Innovation weekly market report, the Eastern Market Indicator dropped by 62 Australian cents, or 3.5%, to finish at 1,723 Australian cents per kilogram. Measured in US currency, the indicator fell by 40 US cents to 1,212 US cents per kilogram.
The correction came as the quantity offered nationally increased. A total of 27,934 bales were presented, 2,042 more than in the preceding week, while the proportion of wool withdrawn because sellers rejected the bids rose to 27.0%. The report identified this as the highest national pass-in rate since May 2023.
Seller resistance strongest in Western Australia
Most of the overall decline occurred on Tuesday, when the indicator lost 44 Australian cents. Eastern Merino micron categories generally weakened by between 30 and 80 Australian cents, while falls in Fremantle reached as much as 117 Australian cents as prices adjusted to earlier movements in the eastern sales and then came under further pressure.
Resistance from sellers was particularly pronounced in Western Australia. There, 51.3% of the offering was passed in, including more than two-thirds of the Merino fleece. Across the national market, about one-third of Merino fleece was withdrawn, compared with the overall pass-in rate of 27.0%.
- Eastern Market Indicator: 1,723 Australian cents per kilogram
- Weekly movement: down 62 Australian cents, or 3.5%
- National offering: 27,934 bales
- National pass-in rate: 27.0%
| Market measure | Sales date | Price or rate | Change |
|---|---|---|---|
| Eastern Market Indicator | 27–28 October 2026 | 1,723 Australian cents per kilogram | Down 62 Australian cents, 3.5% |
| Eastern Market Indicator | 27–28 October 2026 | 1,212 US cents per kilogram | Down 40 US cents |
| Australian wool market | 27–28 October 2026 | 27.0% pass-in rate | Highest since May 2023 |
Quality continues to separate demand
The report said better-style, well-measured fine wool continued to outperform clips with lower style, higher vegetable matter or larger mid-breaks. Standard Chinese topmaking wool bore much of Tuesday’s decline, although competition from processors strengthened on Wednesday as buyers sought to complete orders.
Selected better-style lots in the 17.5 to 18 micron range were firm to dearer despite the broader market weakness. The result indicates that demand was not uniform across the catalogue, with quality and specification continuing to influence the outcome for individual lots.
The Australian Wool Innovation report said the high pass-in rate for Merino fleece showed that many growers remained unwilling to meet the market after the recent correction, particularly where clips were of better quality. Some were prepared to retain their wool rather than sell at the bids available. The report noted that this approach could reduce the amount of wool available if pressure on prices continued.
Underlying supply also remained below the previous season. Australian-sourced offerings were reported to be 13.1% lower than at the equivalent point last season, while the forecast offering was around 28,400 bales.
