Wool prices have improved modestly, with some merchants paying 5c/kg more for wool now compared with prices paid in May.

Farmers are being paid 55c/kg to 60c/kg for lowland wool. A few weeks ago the prices paid were ranging from 50c/kg to 55c/kg.

Scottish Blackface wool is selling from a top of 45c/kg for clean white wool back to 20c/kg to 25c/kg for Scotch wool containing a lot of grey and black wool.

Merchants say black wool commands a lower price because it cannot be dyed different colours like white wool. This, they say, reduces the market available for black wool fibres.

The increase in price comes on the back of improved clearances and higher average price at the British Wool auctions.

British Wool is based in Bradford and is owned by approximately 40,000 sheep farmers in the UK.

It collects, grades, sells and promotes British wool to the international wool textile industry for use in flooring, furnishings and apparel.

The latest sale on Tuesday 24 July saw a 97.8% clearance (up 1.5% on the previous sale) with 1.274m kg of wool sold. The average price achieved for greasy wool was £1.14/kg, or €1.28/kg at 89p to the euro. This is an increase of 14p/kg compared with last January’s auction.

Despite the modest increase in domestic prices, wool sales will still not cover the cost of contract shearing on Irish farms. Farmers will have to make up the shortfall.

In general, prices have been very poor for a number of months, with demand from China not as strong as previous years.

Brexit is very much a worry for merchants now, as the majority of Irish wool currently goes to Bradford in the UK for scouring. Any disruption in this route to trade could have very significant negative consequences for domestic wool prices in the future.

On average, Irish wool has a micron value in the mid-30s, while Merino wool from warm climates has much lower micron value, closer to the low 20s, which is ideal for finer garments.

One merchant said Australian Merino wool was making as much as $12/kg because finer material is very much in demand now.