Australian Wool Sales –  27 March 2026 – AWI Commentary

The Australian wool market recorded a decline, with the EMI finishing 27 cents softer closing at 1,724 c/kg. The softer AUD this week resulted in more extensive losses in USD terms with the EMI finishing at 1,202 cents –a 43 cents decline.

However, year on year the EMI still remains 38.5% higher in AUD terms and 53.1% higher in USD terms.

Price weakness was concentrated in the 18.5–21 micron Merino fleece range, with falls generally in the order of 40–60 cents, particularly across Southern and Western selling centres. In contrast, the Northern region showed relative resilience, with some firmness in the 20-21 microns. Crossbred wools also recorded declines across most microns.

Passed-in rates this week sit at 9% nationally, with the West exceeding 13%. Elevated pass-in levels, particularly in Merino fleece (>10% in some regions), signalling some growing seller resistance.

This week saw another strong offering of near 40,000 bales, the continued strong offerings this year is notable in the backdrop of a reduced national production. Offerings year on year are sitting 4.2% lower while per the February AWTA update testing is sitting 9.4% behind the previous season. This gap is notable and is presumably being filled by broker or farm held stocks, as sellers respond to stronger pricing. As this extra throughput is worked through the sale rooms the continued higher weekly offerings of ~40,000 bales would look to be unsustainable.

Rising shipping and logistics costs driven by the Middle East conflict, increased supply in the auction rooms easing competitive pressure, and a sustained period of price increases have all contributed to some modest retracements in the market in recent weeks. The coming weeks will reveal how well the market can absorb these headwinds.

Next week sees 37,815 bales being offered on the Tuesday –Wednesday schedule.

Source: AWI