The benchmark eastern market indicator (EMI) has plunged below 1700 cents a kilogram as prices tracked downward at selling centres across the nation.
The EMI shed a worrying 47c today to land at 1676c after dropping 31c yesterday during the first auction wool sale after the three-week winter recess.
Market pundits were right to be nervous about the re-start of sales after China-US trade tensions were wound up even higher during the break by President Donald Trump.
The market had staged a welcome rebound prior to the break but some market observers feared the rally wouldn't be sustained and they were right.
AWEX reported the pass-in rate hit 28pc in Sydney today as reluctant buyers retreated from the market which triggered price reductions across all micron categories.
Nationally 20,710 bales were offered with 14,141 sold for a turnover of $23.1 million, AWEX reported.
Wools of 18.5 microns and broader recorded losses of 60-80c while the finer microns ended the day 20-30c lower.
The story was the same in Melbourne with wools 18.5 micron and finer shedding 45-55c while 19 micron and coarser fleece fell by 75c.
A lack of buyer confidence across the Nullabor sent the Fremantle Merino fleece market sliding by 90-100c compared with yesterday's rates. More than half the 3579-bale offering was passed-in.
A total 20,833 bales were offered nationally yesterday with 15,462 sold for a gross of $27.9m.
Just over 7000 bales were offered in Sydney with a clearance of 5677 bales.
A total 43,603 bales are rostered for sale in Sydney (35,215) and Fremantle next week which will further test the market.