THE WOOL CLIP.

Auckland Star, Volume LIX, Issue 255, 27 October 1928, Page 4

THE WOOL CLIP.

PROSPECTS REVIEWED. NO BOOM PRICES. jAi (: in;Tu;\' TO growkjis. (t',\ 1 !"i-i • u'im |> 11 - S pre in I In 'Star.") UI'NKDIN. tliis day. \ ->i <<111i11< til Dimcd'ui man in the wool 11,i,|,. u i,,, has i i-t urnoil IVom Australia {■x |»i < i•| •i i 111 *11 s as to flit* outlook, as folium: - . . . \\V, ai • • ;mt u-ipat ui}£ a very good clip in Imfli islands lln oughnut New Zealand, but, jnic- will probably not. lie anything like those t hiil were obtained towards the clone of i.i»l season's sales. We miisl, expect v,lines somewhere round the values of tbe opening sales in November and Doc-ember lather ihaii the late summer prices. Those late season's liiuh prices were forced by Continental and Bradford importers, who were under tin: impression that there ■would likely lie a wool famine. That prophecy of famine was founded on incorrect .slateiucnts from Australian wool growers and brokers, who calculated that 1 hero would be a shortage of at least 3.000.000 or 4.000.(100 bales, whereas the ai tual shortage proved to be only about oil,ooo bales. Importers and merchants in England and elsewhere naturally wanted to lay in stocks. That prophesised wool fain* iii<! did not occur, and is not likely to occur, consequently big buyers found that they were over-supplied, with the result Hint they had to realise, and prices were cut in Bradford, on the Continent, and in America. Trade in England was bad at the time, and the demand for wool declined from April to the present time. The cause ol that was that much machinery was lying idle, high juices having curtailed the demand and set people economising, as they always do when goods arc doar.

.As to tlie Australian .sales now in full .swing. Yorkshire buyers, who are the biggest factor." in the world's wool market, aro not purchasing largely. Present prices are maintained by Japanese buyers, and to a certain extent by .Russians. The ruling values for Australian wools, which are chiefly Merino, run about 15 to 20 per cetit below those of the sales last March. The general opinion as to the coining sales ill Now Zealand is that there will be a fair demand for crossbred*, which form the bulk of New Zealand clips at prices •approximately on a par with those rulinp at the openinjx sales last year. Such return, however, will be profitable 10 growers. Prices will probably be higher than the general average since the commandeer. The expectation is uot of slump iior of high prices, but of a steady market throughout the season.