The latest British Wool Auction held on 4 April fell below expectations with many categories of wool slightly reduced in price while the clearance rate was recorded at 75.6% compared to 99.4% in the previous sale.

The sale report highlighted that demand for British Wool weakened in the latest sale despite the average greasy price increasing marginally on the previous sale. The report stated “on average prices were 'buyers favour' and 2.5% cheaper, except combing wools, which were 'sellers favour' and 2.5% dearer”.

This increase in the greasy wool price of 1.8p/kg to an average price of 73.8p/kg was underpinned by the sale offering including a greater percentage of higher value wool categories and a broader range of organic lots, which achieved a premium over non-organic types.

Reduced demand

Combing wools recorded good competition throughout the auction but many of the carpet grades failed to obtain bids during the auction meaning 51 lots of the 238 on offer went unsold. This resulted in a clearance rate of just 60% after the live phase of the auction. However some positive negotiations after the auction increased the clearance rate to 75.6% of 1,623t offered.

The trade was particularly challenging for hill wool with just 46% of hill wool selling and 48% of mountain wool. Mule wool achieved a clearance rate of 825, fine wool 84%, medium wool 92% and lamb’s wool 100%.

Higher returns

British Wool stated after the latest sale that higher wool prices are required if a consistent supply of wool is to be sustained. Poor wool prices have been a growing issue in recent years with many farmers becoming disillusioned with the wool trade. This is having knock on consequences to the manner in which wool is handled and presented with some producers looking at other options such as composting wool.

British Wool auctions are held every two weeks at this time of year with the next auction due to take place on 18 April.