SHORT supply and vigorous demand has seen recent wool prices soar to 113p a kilo.

The British Wool Marketing Board has sold out and cancelled two of the last six sales of the selling year at its Bradford headquarters.

Frank Langrish, chairman, believes higher prices are sustainable and says the current demand confirms the success of the UK’s wool marketing system.

He said: “The indicator price for wool was around 73p a kilo in October,but tightening supplies have sent prices soaring.

“It’s good news for producers who will see a noticeable improvement in their balance payment, even allowing for the fact that 65pc of wool was sold before the price increase.”

Mr Langrish is confident higher prices will continue when wool auctions for the next season’s clip start in early summer.

He said: “I believe this is the start of a trend that will see wool recognised for its qualities as a sustainable fibre at a time when the manufacturing processes of synthetic materials are increasingly at the mercy of volatile oil prices.”

The board recently attended Surfaces 2010, the leading North American flooring show, to promote British wool for carpets.