Wool Partners International chief executive Iain Abercrombie said the volume of wool coming forward for sale was 22% lower than at the same time last year, a trend he largely attributed to farmers storing it in anticipation prices would improve.
Mr Abercombie said that a year ago wool prices were at a 12-year high but the credit crunch had seen manufacturers go out of business and demand dry up.
However, in recent weeks there were signs demand was picking up and manufacturers were inquiring about supply, Mr Abercrombie said.
Lee Stream farmer Owen Diack has stored his 117-bale main shear on his farm since the middle of June, saying he is not prepared to sell in a falling market and wants to be in control of when his wool is sold.
"It's too good a product to dump," Mr Diack said.
The wool was valued this year at between $2.40 and $2.70 a kg, Mr Diack said.
When he bought his farm in 1981, his wool was valued at $2.30 a kg.
He hoped that by retaining his clip until the bulk of pre-lamb wool had been sold, supply and demand could force prices higher.
Federated Farmers meat and fibre chairman Bruce Wills said he still had 30 bales unsold and knew of many farmers who had wool stored in their sheds.
His wool had been acquired since February and he hoped to sell it before his main shear in December.
"It is rare for me to have that amount of wool unsold, but I know I would get so little for it."
Meat and Wool New Zealand statistics reveal that exports of wool in the year to last month were 15% down on the same period a year earlier, but on a month-to-month comparison were down 9.6%.