Even though the national quantity of wool offered through the market last week was reduced significantly, nearly 13 per cent was passed in, mainly due to prices failing to meet grower expectations.
The Eastern Market Indicator (EMI) finished eight cents weaker to land at 1952 cents per kilogram, up 3.2 per cent than the same time last year.
Australian Wool Innovation's trade consultant, Scott Carmody, said in the Merino segment, processors and top-makers took the opportunity to load up on their inventory levels with two big guns from China sitting the week out from any purchasing activity.
"The absence of the normally stiff competition of the indent operators allowed a general freedom in price determination as the Australian exporters looked to the top-makers to ascertain what buy-in levels they should pay to satisfy prompt needs," Mr Carmody said.
Mr Carmody also reported that Australian wool export figures from March show China lifting its market share from 71 to 73pc for the current season.
"This falls short of the 76pc of a much larger offering last season, but with a quarter of the seasons numbers still to come in, that percentage is likely to lift again," Mr Carmody said.
The long dry period experienced across much of Australia's wool growing areas is still making its presence felt with fleece quantities and qualities still in decline mode.
At this stage of the season, with just seven weeks of selling left, shows there has been a staggering 248,004 less bales sold through the auction system than at the same period of last season.
"This represents a reduction of 15.7pc which far exceeds the Australian Wool Testing Authority (AWTA) key test data which shows a 10.3pc year-on-year retraction of all wool tested," Mr Carmody said.
The greasy weight of wool showed a decrease of 10.3pc or 31,881 tonnes while yield is still tracking lower dropping 1.6pc.
So far this season 26.4pc of the Merino fleece offering has been style 4, this is 15pc lower than the same time last season.
In general, the Merino prices were down by 15 to 40c when compared to the previous week. Inferior types struggled and were up to 50 to 70c cheaper.
Merino skirtings finished on a steady note, but in the same direction as recent weeks crossbred wools moved up continuing their excellent run.
AWEX reported the value of the wool sold was $58.1 million or $2045 per bale, taking the season total to $2.891 billion or $2166 per bale.
This week 33,361 bales are on offer across all three selling centres.
- With Mike Avery, Southern Aurora Markets
Forward markets traded briskly with trades across most microns and maturities out to February 2021.
The main focus was on the Spring of 2020 and autumn 2021 where 85 tonnes traded between 2125 and 2155c in the 19-micron category.
Fair value seemed to be achieved with growers wanting certainty of return for up to two years out at attractive margin levels.
Processors likewise are looking for some certainty of price to combat the volatility of recent times.
With demand remaining poor it is expected spot prices to continue to ease but tempered by the tight supply.
Forward markets will likely follow suite and weaken slightly.