THE WOOL TRADE

Ashburton Guardian, Volume 48, Issue 91, 27 January 1928, Page 7

THE WOOL TRADE

A PROMISING OUTLOOK. “I consider that wool, already so hirrh that most New Zealand buyers are practically out of business, will rise steadily over the next two years until ic will reach the peak in 1930.” Thus spoke a well-known -woolbuyer to a press man on Monday (says the Napier ‘‘Telegraph.”) Asked how he could he so optimistic on top of the present good values ruling to-day, the buyer explained that there was a worla shortage of fleece—that was not seriously disputed. This had been operating, he said, for some time, and recently an effort to force the market higher, because of the shortage, had faded, and after prices had shown a slight improvement there was a reaction. . That was caused, in the buyer s i opinion, hecanse it was an artincial at--1 tempt to force values onward. Continuing, he said that the shortage W as now beginning to he felt in real earnest. The shortage was being felt by operators, was a perfectly natural thing. When this shortage was fully realised, prices would soar. The buyer pointed out that it was much to his discomfiture that he should think so, as a rise would seriously a fleet him—to be explicitly plain, he could not stand it. He / would like to see wool fall—from purely personal motives—but this reasoning told him he was in a had time and the seller was to reap the benefit—a golden benefit that would result in the wnole Dominion regaining Wool had to go up, and it would continue up till it reached its highest point in / He contended that wool would indeed he the golden fleece during this and the next- two seasons, and that prosperity would wait on its com3nWool was in growing demand, hut the supply was not equal to it and the natural sequence was a fight for it at the auction sales. Pressed on the point, the buyer stated that nothing was certain in tins world, hut In's reasoning led him to beJeive, against his own wishes, that wool was (roing to rise, to continue risnur for the next few seasons, and only greater production would overcome what be considered would he exorbitant prices.