Wool discolouration, caused by inclement weather before Christmas, affected prices at last week's South Island wool sale.
Prices were still poor due to the high percentage of discoloration while lambs' wool was in good demand, especially lines with no discolouration, CP Wool supply relationship manager Roger Fuller said.
The low passing rate has seen farmers reluctantly accepting the low levels. "The exporters are certainly trying to deliver into markets but the faulty wool quality is making these markets very minimal,'' he said.
ANZ's latest Agri-Focus report said it was unlikely there would be a turnaround in the coarse wool market any time soon, describing international market demand as "dismal''.
Prices for coarse wool at the early January wool sales were marginally above year-ago levels but were still 32% below the five-year average. It was unlikely there would be a turnaround in that market any time soon.
New season lambs' wool was attracting more buyer attention but it remained to be seen if that would continue as higher volumes became available.
The volume available was lower than normal due to delays in shearing because of the wetter weather.
The recent lift in shearing costs and poor returns for greasy wool meant some farmers were opting to finish more lambs with wool on.
More ewes were also being culled woolly, which had resulted in an increase in the quantity and length of slipe wool.
Fine wool markets remained firm but there was virtually no fine wool on offer at this time of the season, the report said.
A range of prices.-
Island Block Farm (Otago), 48 bales crossbred AA, 37.2 micron, 77.7% yield, 215 greasy, 283 clean; Glen Ayr Trust (Otago), nine bales crossbred AA, 37.3 micron, 78.4% yield, 243 greasy, 310 clean; Awakea Ltd (Otago), 51 bales crossbred AA, 37.5 micron, 77.7% yield, 215 greasy, 277 clean; Melville Ltd (Otago), eight bales Romney hogget, 35.2 micron, 77.3% yield, 237 greasy, 306 clean; Rishworth Farms (Otago), 29 bales Romney second-shear, 39.4 micron, 81.9% yield, 236 greasy, 288 clean; Mt Albert Station (Otago), 36 bales crossbred 2-tooth, 35.8 micron, 81.6% yield, 249 greasy, 305 clean; Island Block Farm (Otago), 15 bales crossbred lambs, 30.7 micron, 79.8% yield, 402 greasy, 504 clean; LG Cook (Otago), 18 bales crossbred lambs, 31.2 micron, 81.1% yield, 376 greasy, 464 clean; McRae Farm Ltd (Otago), 14 bales Perendale lambs, 29.3 micron, 81.3% yield, 460 greasy, 567 clean; Hewett Farm (Otago), 21 bales crossbred lambs, 30.7 micron, 81.6% yield, 376 greasy, 461 clean; S & K Eason (Otago), four bales crossbred lambs, 29.6 micron, 76.4% yield, 453 greasy, 592 clean; Longridge Partnership (Lawrence), 14 bales Romney lambs AA, 30.4 micron, 78.1% yield, 436 greasy, 558 clean; G & S Thompson and Trust Partnership (Lawrence), 11 bales Romney lambs AA, 30.4 micron, 79.7% yield, 439 greasy, 551 clean; Hunter Hills Station Ltd (Kurow), 10 bales crossbred lambs AA, 28.4 micron, 77.7% yield, 496 greasy, 638 clean.
