Australian Wool Prices Plummet 3.3% as Market Adjusts to Recess

Australian wool auctions resumed after a three-week break, resulting in a significant decline in prices. The market opened lower before stabilizing on the second day, with the Eastern Market Indicator (EMI) falling by 61 cents or 3.3%, settling at 1,812 Australian dollars per kilogram.

The decline was compounded by currency movements, as the Australian dollar strengthened to 70.7 US cents over the week. The steepest drop occurred on Tuesday, with the EMI plummeting 51 cents, its largest single-day decrease since October 2020. Merino fleece experienced the most significant correction, with price guides dropping between 16 and 107 cents.

Despite the decline, the EMI remains 565 cents or 45.3% higher than a year ago. The forecast for next week's national offering is 31,095 bales across Sydney, Melbourne, and Fremantle, an 18% reduction from this week's total.