Several weeks of wet weather over virtually the whole country has slowed pre-lamb shearing of sheep, causing the cancellation of all wool auctions this week and the planned sale of North Island wool next week.
This disruption coincides with the New Zealand-United States exchange rate falling to US66c, its lowest level since August last year, and renewed demand caused by a shortage of wool.
The Council of Wool Exporters chief executive Nick Nicholson said not only had sheep not had time to dry out for shearing, but in some areas farmers had been unable to reach their woolsheds or move stock because of flooding.
While wool prices were still low, Mr Nicholson said demand had been slowly rising, evident in prices at earlier sales increasing despite an exchange rate that penalised exporters.
Next week's South Island sale at this stage has just 6000 bales rostered, but Mr Nicholson said that should grow.
