The benchmark eastern market indicator (EMI) shed 31 cents a kg to hit 1723c at the close of the first auction wool sales after the three-week winter recess.
Market pundits were nervous about the re-start of sales after China-US trade tensions were wound up even higher during the break.
The market had staged a welcome rebound prior to the break but some market observers feared the rally wouldn't be sustained.
The passed-in or no bid rate was almost 20pc in Sydney and Melbourne but a whopping 55.1pc in Fremantle.
A total 20,833 bales were offered nationally with 15,462 sold for a gross of $27.9m.
Just over 7000 bales were offered in Sydney with a clearance of 5677 bales.
AWEX said weaker buyer demand was evident across all micron categories in Sydney. Wools 18.5 microns and finer sank by 20-40c. Broader microns eased by 40-50c.
The pain was felt a little more in Melbourne where 8089 bales were sold from a catalogue of 10,000 bales.
AWEX said prices fell across all categories 19 microns and coarser by 50-60c. Wools 18.5 microns and finer fell by 25-30c.
Over in the west large losses were experienced in fleece lines with price levels dropping by 80-90c compared with the previous sale. A total 3780 bales were offered with 1696 sold.
Sales continue today in Sydney, Melbourne and Fremantle with 22,286 bales rostered for sale.