British Wool prices gain momentum at first BWMB sale of the season

The first British Wool Sale of the 2007 Season got off to a very positive start with wool prices reported to be significantly up on the equivalent sale last year.

Average wool prices of 76½ pence per kg were attained which is an increase of 10 pence per kg set against last season's average price of 66 pence per kg.

The BWMB for the first time in its history has gone into the new selling season with no carryover stock, placing it in a very good trading position.

Although wool prices have been at a very low level, indications from the first auction are that the market is now brisker and returns for the offering was very good.

Based on these figures the BWMB balance payments to the farmer next year should be in the region of 30/35 pence plus per kg for this year's clip, which with the advance payment makes an average value to the producer of the 2007 clip in the region of 40 pence to 45 pence per kg.

Mr Mark Powell, Wool Marketing Manager at the BWMB said,

"Whilst recognising the frustrations of our wool producers at the recent low prices, we urge them to continue to support the BWMB this season - this sale shows great potential and the return to the producer will be higher as a result.

"Supply and demand is a vital part of the wool chain and the continuous support of the producer is vital to uphold this rise in market interest and British Wool prices."