THE FUTURE OF WOOL

Press, Volume LXXVI, Issue 23194, 4 December 1940, Page 6

THE FUTURE OF WOOL

POST-WAR BUYING IN EUROPE •CONFIDENCE IN INDUSTRY ESSENTIAL Many opinions have been expressed regarding the probable post-war position of wool. The prophecies have been mostly of a pessimistic nature, and, at least to the satisfaction of those who made them, are considered to be based on facts as they exist to-day, says the ‘‘Sydney Morning Herald.” Can the evidence available in 1940 be accepted as a guide to the events of 1941 or subsequent years? Even the Prime Minister of Great Britain does not commit himself to a definite expression of opinion respecting the duration of the war. The size of the temporarily surplus stock which must inevitably be accumulated depends upon the length of time hostilities last. The law of supply and demand will operate when world trading resumes, and the position of stocks will, therefore, be an influence on values. Who at this stage can estimate what quantities will be on hand? Europe unquestionably will be wool hungry. In spite of Germany's much advertised production of substitute fibres, no country was more anxious to make reciprocal trading agreements to enable her to secure supplies of the sheep’s staple.'She imported the equivalent of 1,020,000 bales from all sources in 1938. Docs that action indicate that she and other European nations can free themselves from the necessity of importing wool? Can any person accurately estimate what industrial awakening will occur in China when peace comes to that nation? She may want wool in large shipments in years to come. After the 1914-18 war, wool was consumed with great rapidity once a basis of values was established. Warehouses and shops were devoid of stocks, and millions of people wore anxious to replenish their wardrobes. , The future of wool is difficult to assess in normal days; it is far more so in present circumstances. Developments after the war may be favourable or otherwise. The former is just as possible as the latter. Meantime, confidence in the sheep industry is an essential. Would the landholder battle with drought if he lacked it? Gloomy forebodings of wool markets tend to destroy, not only the faith of the stockowner in his activity, but to create nervousness among tne institutions which finance him. They are not warranted, because “for good or ill,” human beings are not equipped to see too far into the future. In September, with vicious air raids and the threat of. invasion, the English trade was not downhearted. Leeds reports late in that month stated that the call for heavier lounge suits and overcoats for the winter was much better than a year previously. Stockrooms of most factories were being gradually cleared of goods. The chain stores were purchasing clothing in extensive quantities. Fair exports were being made to the Dominions, South America, the United States, South Africa, and Eire. Few looms were idle in the Wert Riding, The Scottish border woollen mills were generally fully employed, and business prospects were considered fairly encouraging.

With our clip sold for the duration of the war and one year afterwards, the Australian pastoralist is more securely situated than the British millman in respect to the marketing of his product. Yet the millman is not endeavouring “to cross his bridges before he comes to them.” That is the correct attitude.

HEAVIER WOOL APPRAISEMENTS HUGE AUSTRALIAN TOTAL Earlier in the Australians' wool season it was intended to appraise approximately 1,750,000 bales before the end of the calendar year, and on November 13 the Wool Board reported that 1,126,841 bales had been valued to a total of £17,681,000. Recently, however, it was decided, in order to meet demands occasioned by the requirements of the United States and of the strategic storage scheme in that country, that appraisements should be speeded up and it is expected that 1,947,680 bales will have been dealt with by Christmas. The Sydney appraisements to November 14 aggregated 586,253 bales, compared with 349,346 bales at the same date last year. At that time 935,859 bales had been received into store as against 966,829 bales at the corresponding date in 1939. The average appraised price In Sydney is 11.39 d, so that a greater equalisation payment will be necessary at the end of the year than was paid last year to bring the price to the agreed level of 13.4375 d per lb. The problem of finding markets for manufactured wool and woollen goods is being vigorously tackled in Great Britain, the latest development having been the appointment of the National Wool Export 'Corporation (British) to explore all possible fields. A British trade commission recently left England for South America, and it is believed in trade circles that an effort will be made to secure the Argentine and Uruguay clips, thus giving Britain virtual control of the world’s exportable textile wools. GOOD SEASON IN NORTH The Culverden district is looking bet. ter than it has done for years. Rains during the earlier part of the season greatly delayed shearing but the weather for the last week or so has been beautifully fine, with one or two very hot days and shearing is now well under way. There is an abundance of feed and the stock are all in fine fettle, particularly the early lambs, which are in excellent condition. At this time l&st year many farmers were hand-feeding stock, a condition due to the light rainfall and a long period of strong north-westerly winds. So far Culverden has been extremely fortunate in this respect. Except for an occasional north-westerly wind in the earlier part of the season, when the crops were not far enough advanced to suffer much damage, wind from the north-west has been only light and infrequent. The crops are all looking remarkably well and the farmers are unanimous in the opinion that it is the best season they have had for years. A large acreage has been sown in wheat.