Wool market improves as 2020 selling season 'ends strongly'

British Wool CEO Andrew Hogley says he is 'optimistic' that the price recovery will continue
British Wool CEO Andrew Hogley says he is 'optimistic' that the price recovery will continue

The wool market is continuing to recover with the 2020 selling season ending strongly with robust demand and improving prices, British Wool says.

As the shearing seasons starts to gain momentum, British Wool has issued a positive update on the state of the sector following a tough year due to the pandemic.

Since February, prices have started to recover with the average auction price at the end of the 2020 selling season finishing at 69p per kilo.

This is compared to 50p – 55p for most of the last twelve months.

Nearly all (97%) of the 2020 wool clip has now been sold with the remaining 2020 wool carried forward into the new selling season, which starts in July.

Due to the shearing season this year being at least 3 weeks behind compared to the previous season, British Wool says this will support supply and the mix of wool available for the early season sales.

CEO Andrew Hogley said he was 'optimistic' that the price recovery seen in recent months would continue during the course of the next year.

“As the 2021 wool selling season starts in July, over the last 12 months we have sold 31 million kg of wool, the largest annual volume for ten years," he explained.

"With a healthier stock position, reduced cost base and recovering auction prices this puts British Wool in a much stronger position to deliver better value for our producers in 2021.”

Mr Hogley urged those producers who had 2020 wool still on the farm to deliver this into British Wool depots this season.

"Every kilo of wool that British Wool handles makes an important contribution to supporting your organisation," he added.

British Wool says it will be making further announcements during July on initiatives that are being launched to further drive demand for wool.