A drop in the wool supply and a weaker New Zealand dollar have combined to give prices a lift at this week's South Island wool sale.
Only 7000 bales were auctioned, a third lower than expected.
The offering at last week's North Island sale was also well down on what had been rostered, and it's thought to be largely due to the drought.
John Dawson of exporter New Zealand Wool Services International says the reasons for the South Island drop are less clear, and the fall is likely to be due to several factors.
More wool came on earlier than in previous seasons In the South Island, there has been a continued drop in sheep numbers and a change in shearing patterns.
Mr Dawson says limited supply is expected to continue for the next few months but the positive side is the pressure it's putting on the marketplace.
He says the tight supplies also mean nearly all of the wool put up for auction is being sold - 90% on Thursday and 95% last week.
