Market Update
Recent auction sales have seen strong competition for wool and a significant increase in prices. All of the main buyers of British wool have been active. UK, European, and Chinese-focussed buyers competing to secure wool supplies. All core types of British wool are now trading at significantly higher levels than we saw last season. Prices are at their highest levels in almost a decade. This should help support returns for British Wool members this season if prices hold.
The British Wool index has increased by 27% over the last two months. The average auction price reached £1.21 per kg in the sale on 4th November. Sale prices last season averaged £1.00 per kg.
The trend mirrors the price rises that have been seen in New Zealand, with global demand for quality cross-bred wool outstripping supplies.
Operational Update
British Wool’s depots are still open to receive wool this season. The greater the volume of wool handled by your cooperative the lower the overall operating costs per kilo will be at year end.
Andrew Hogley, CEO: “After positive talks with the trade, our sales team expects strong demand to continue through the season.
“Recent sales in New Zealand have been very competitive. Global demand for quality cross-bred wool still exceeds supply.”
This season’s wool is also generally of a higher quality than last season’s wool. The dry spring and summer resulted in whiter wool this season with more of the clip being classed as a No. 1 grade.
Andrew says: “Test results for new season wool continue to be significantly better than last year for colour, and continues to produce a greater proportion of No. 1 grades in the core types.”
We have received a large quantity of wool from new and returning members this season, but the overall volume handled to date is running around 2% to 3% below last year.
“Improved prices in 2024 encouraged many farmers to sell wool they had been holding or using on-farm this year.,” says Andrew.
“As a co-operative, we aim to maximise returns for sheep farmers. With prices improving, we encourage members to send in any wool before winter.
“If you still have wool on-farm, contact us to arrange delivery or collection. By marketing the clip together, we can promote British wool and help drive better price.”