An analyst with Agri HQ Nick Handley says farmers have been getting decent returns for their wool over the last month.
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Mr Handley said despite the exchange rate, farmers had been getting good prices for lambs and fine cross-bred wool.
"The weaker New Zealand dollar at the most recent auction last week meant prices increased across the board with 35 micron wool sitting at $5.80 a kilogram, which is the highest level since November last year.
"And at the same auction, lambs wool sold for $6.80 a kilogram, the highest price since April 2011," he said.
"Low volumes have contributed to the higher prices over the past month or two. In part this is due to the general decline in the New Zealand ewe flock.
"But there have also been more ewes slaughtered this season that had previously been expected, and that obviously cuts wool production as well."
Mr Handley said last week's auction result was a promising sign for demand, with buyers needing to source wool to fill contracts they had already committed too.