2026 wool market outlook provided

Representatives from the sheep and wool industry recently gathered to share their thoughts on 2026 wool market conditions during a May 7 webinar hosted by the American Sheep Industry Association (ASI).

Moderated by ASI Wool Production Program Manager Heather Pearce, the webinar featured comments from six speakers who offered insight on global, national and regional wool market trends. 

The webinar was held as part of ASI’s “Elevate Your Wool” series which offers producers a closer look at wool market conditions and how to get the most value for their wool.

Market overview

To kick off the webinar, Pearce offered a broad introduction and inside look at the wool supply chain, providing background information and statistics on the U.S. wool industry.

She provided a breakdown of how U.S. wool gets used, noting over one-half of American wool gets exported to mills overseas on an annual basis, roughly 15 percent is processed in the U.S. and used by the military, 19 percent goes into other domestic products and the remainder is processed by small mills across the country. 

“The big thing for producers to know is having several markets means several opportunities to sell wool into a competitive market,” Pearce stated. “At the end of the day, what happens at the consumer level really tells us what people want and are willing to spend money on, which then dictates what manufacturers are looking for and willing to pay.”

Wool supply chain

Following Pearce’s introduction, Dan Gutzman, retired wool department manager with Pendleton Wool Mills, offered a more in-depth look at how wool flows through the supply chain.

Gutzman discussed factors which have the most impact on ultimate payout from wool buyers, primarily focusing on quality from shearing to market.

He encouraged producers to take a hands-on role in quality inspections during shearing, taking care to limit foreign materials like vegetable matter, paint, straw and excessive dirt from compromising the wool clip.

“After many years of being in and around the shearing process, the one thing I can say without a doubt is money is made from the shearing blades to packaging,” Gutzman said. “It really does make a difference watching what’s going into the bag.”

Gutzman emphasized buyers prioritize quality, easy-to-blend wool clips, noting cleaner wool leads to less loss during processing and higher profits for the buyer and the producer. 

He stressed the importance of preparation as the first step in ensuring profit, saying wool buyers tend to seek out producers with reputations for quality wool clips.

“The best thing a producer can do is be known for good preparation,” Gutzman said. “The best venue for getting wool marketed easily is providing a good product, because buyers will find it.”

Global markets

Next, Anodyne Wool Director of Sustainability Erin Dorf gave an update on consumer trends and factors affecting the global wool market. 

Her comments highlighted an unprecedented, unpredictable time for the wool industry, where consumer trends indicate a high demand for wool but economic pressures pose threats.

She began by calling attention back to January conditions where consumer interest in wool was soaring and market prices matched. 

Today, in spite of continued widespread cultural interest in wool, Dorf warned increased prices across the board resulting from the war with Iran threaten to push consumers into more conservative spending habits where affordability is prioritized and luxury spending is cut back.

She explained the ripple effects from the blockade of the Strait of Hormuz have led consumers from an era of value-based sourcing to survival-based sourcing and emphasized the impending energy crisis poses serious threats to consumer patterns.

“The higher the price of oil goes, the higher the cost of conversion is for wool,” Dorf stated. “We need to be realistic about input costs and conversion costs associated with turning raw wool into a garment, knowing consumers are going to be stressed and spending on clothing – especially luxury clothing – is going to be one of the first things consumers cut.”

With this, Dorf encouraged producers to consider the power of liquidity rather than trying to wait out market conditions in hopes of higher prices.

“There is so much uncertainty, my advice is liquidity is king right now,” Dorf said. “If we hold on to our wool waiting for January prices to come back, we risk the industry moving on without us.”

“If we price ourselves out of the market today, we risk losing seasons down the road as well,” she added. “It’s a really fine line we’re trying to tread right now.”

On a positive note, Dorf emphasized consumer interest in wool products is still present and encouraged producers to get involved with short supply chain opportunities through small and mid-size mills. 

“People want something real in a world of social media and artificial intelligence,” Dorf said. “They want something touched by human hands and made with natural fibers and human craftsmanship.”

“Culturally, people are really interested in what the wool industry has to offer,” Dorf concluded. “This interest is set against the backdrop of an affordability and energy crisis which adds a lot of uncertainty to trends.”

U.S. markets

Wool Partners, Inc. Agent Lisa Surber was next to speak, sharing a “cautiously optimistic” overview of U.S. wool markets. 

According to Surber, wool prices continue to trend higher in 2026, reaching numbers last seen in 2018-19 with prices supported by domestic and international interest across fine and medium wool types.

Surber also said the volume of wool being traded in the U.S. signals a “renewed movement and improved confidence for both domestic and export buyers” and noted tighter global supplies coupled with increased demand for natural, traceable fibers continues to support market prices.

“One of the strongest trends in the trading environment right now is premiums paid for verified, welfare-driven wool programs, particularly the Responsible Wool Standard (RWS),” Surber stated. “Across both domestic and international markets, RWS wool continues to command some of the highest prices for U.S. producers, and global apparel brands are increasingly prioritizing traceability.”

“Major outdoor and performance apparel companies are continuing to expand their commitments to these programs, which we think is going to create a long-term demand for compliant clips,” she added.

“The current market continues to reward producers who focus on wool quality, consistency and uniformity, proper preparation, packaging and traceability and welfare standards,” Surber concluded. “Overall, the tone for the wool market remains cautiously optimistic.”

Regional markets

Finally, wool buyers Darrell Keese of Keese International and Gary Groenewold of Groenewold Wool shared regional U.S. updates.

For the Western U.S., Keese highlighted keen competition and high interest in wool of all types and micron counts, from finer fleeces to coarser carding wools.

He echoed Gutzman’s sentiments about the importance of preparation when it comes to marketing wool, recommending a few shearing practices including limiting or avoiding paint entirely, pulling bellies and clashing wool to get the best prices.

“If you want to get the most for your wool, put it up well and pay attention to the product you’re putting out there,” Keese said. “Buyers want wool right now, so get it to the market quick.”

Groenewold briefly discussed the state of the wool industry in the Midwest and Eastern U.S., emphasizing roughly one million pounds of wool goes into a landfill every year due to poor quality or unmarketable traits.

To cut down on this issue, Groenewold recommended producers start by taking one additional step to make their wool better – from keeping vegetable matter out of fibers to making sure to separate wool clips by color.

In closing, Pearce highlighted some helpful resources to help wool producers stay informed including the U.S. Department of Agriculture’s weekly market news updates and a buyer directory and wool calculator available on ASI’s website at sheepusa.org.

The webinar concluded with a question and answer session where speakers weighed in on questions submitted by producers from across the nation.

Grace Skavdahl is the editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.