HOPEFUL VIEW.

Ashburton Guardian, Volume 59, Issue 18, 1 November 1938, Page 9

HOPEFUL VIEW.

THE PROSPECTS FOR WOOL. IMPROVED MARKET EXPECTED. (Per Press Association.) DUNEDIN, October 31. The view that the 1937-38 wool-sell-ing season in New Zealand, which will commence in about three weeks, will open with prices firm on last season’s average of 10.04 d per lb, with a, reasonable possibility of slightly improved market conditions, was expressed to a reporter by Mr F. S. Avent, of J. W. Swift and Company, Ltd., who has just returned to Dunedin from a world tour, during which he visited British, Amencan, and Continental textile representatives and operators, with whom his firm is associated. One of the chief grounds for the favourable view. Mr Avent takes of the wool position at the moment is the increased confidence in trade generally since the conclusion of the Munich conference. Asked about the position of wool stocks overseas, Mr Avent said .thoie was definitely no shortage of iaw material, unless it was in such countries as Germany, Italy and Japan, which

were unable to purchase all the wool they required, owing to the limitations oi‘ their external credits. Many topmakers in Bradford ■were holding considerable stocks of wool which, although sold forward to spinners, had not yet been delivered, because spinners had not yet been able to unload their purchases on manufacturers. In America the position was largely the same. There was a great deal of wool in store and in bond. The slump in America, and the serious labour troubles that had disrupted trade, had been the cause of these accumulations, but lately conditions appeared to have taken a turn for the better, and there was now good reason for hope that the United States would be a purchaser during the 1938-39 sales in both Australia and New Zealand. “Australian prices were lower than the closing rates of last year at the opening of this season’s sales,” said Mr Avent, “but since the Munich agreement was arrived at they have moved u,p noticeably, and I would say that, judging from the .price level of Merino wool in the Commonwealth just now, New Zealand crossbreds should open well up to the average of last season.” From impressions gleaned during a month in Europe, Mr Avent thinks that both Germany and Italy will be buyers this season to the extent of the external credits they can arrange. The difficulty is, however, he said, to know

just what credit will be available to them. Both countries are developing their artificial wool industry to the limit, as is also Japan, but they would be only too glad to buy natural wool, if only for blending with the synthetic fibre, if they could finance their purchases. “A Price-Leveller.” “My impression is that the artificial fibre industry is simply a price leveller, gs it has been for some years now. If wool soars, substitutes must come into high favour, but as long as wool prices are stable there is not much to fear from them. As far as I could learn, the bulk of German woollen goods are about 50-50 natural and artificial wool, although there is a fair amount of 70-30 stuff being used.” France, said Mr Avent, was an enigma, in the wool market at the moment. Last season French operators bought in excess of their immediate requirements as a form of protection against devaluation of the .franc, with the result that there were considerable stocks held over in the various manufacturing centres. That being so, it was to lie expected that France would be a less enthusiastic buyer at this season’s sales. On the contrary, however, when ho arrived in Australia he found that France had been a heavy purchaser. This was difficult to understand in view

of the stocks held in France, unless, of course, there was still a fear in the French industry that the franc would be still further inflated.