Wool is still very much a two-speed market says Georgia Twomey.

Rabobank's Sydney-based commodity analyst told The Country's Jamie Mackay that demand for fine wool continues to outweigh strong wool.

"Strong crossbred wool didn't see much of an uptick in the volume of exports going out which has meant that that price has seen little improvement," says Twomey

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While there is hope that the Chinese market will improve for strong wool, Twomey says the demand "remains a lot lower than a couple of years ago and is keeping a bit of a cap on that coarse wool price."

Mackay asks if crippling drought conditions in Australia could lead to an increase demand for New Zealand fine wool.

Twomey says the current estimate for Australian wool production is for a 6 per cent decline year on year which "would take us to virtually a 90 year low."

Overall the lack of supply of fine wool will help underpin its current strength in the market says Twomey.