After an extremely turbulent few weeks, fine-mid wool growers are breathing a sigh of relief that prices are on the mend.
A lack of good quality wool globally, largely due to drought in Australia, was helping to drive up demand. Photo: RNZ/Carol Stiles
The US-China trade war has been affecting demand, with factories in China feeling reluctant to buy wool to make garments they might struggle to sell.
PGG Wrightson South Island sales manager for wool Dave Burridge said at its peak three weeks ago mid-fine wool prices in New Zealand were down 50 percent compared to the same time last year, but they had now made a notable recovery, sitting about 25 percent back on 2018 levels.
"We've seen a real rollercoaster ride the last five or six weeks through a large degree of instability in the marketplace, drive largely by the tariff trade wars between the USA and China... but since the last two weeks there's been quite a remarkable recovery for the mid to fine wool."
Mr Burridge said a lack of good quality wool globally, largely due to drought in Australia, was helping to drive-up demand.
"[The] quality of our wools here is seen as better wools compared to the drought affected wools in Australia, so certainly the top-end of the market, quality-wise, has seen quite a [price] correction, which is good for the wool growers here in New Zealand."
He said the volitable prices had made it very difficult for farmers to be able to budget and what the industry "would like to see now is just some stability".