HIGHER VALUES.

Auckland Star, Volume LXVI, Issue 307, 28 December 1935, Page 4

HIGHER VALUES.

PRICES FOR WOOL.

RISE NOT EXCESSIVE

A HOPEFUL FORECAST. The check which was recently experienced in values for spinners' wools did not extend to other grades, and the market rapidly regained its buoyant tone, states a report on the wool position, issued by Messrs. Winchcombe, Carson, Limited, Sydney. Compared with December, 1934, spinners' fleece wools have latterly been 30 per cent dearer, topmaking fleece wools 40 per cent higher and skirtings 40 per cent to 45 per cent dearer. The greater advance in skirtings is not an unusual development in periods of rising prices. They gain more extensive use owing to the resistance to advancing figures for manufacturers. Of late years the growth of standard price trading as practised by the multiple stores throughout the world has accentuated the movement to utilise lower grade wools when rates are rising in order to keep retail selling figures within specified limits.

A further indication of the effects of more costly wool arc shown in the larger use of mohair, the hair of the Angora goat. It is utilised in the manufacture of linings, upholstery, fabrics, men's lightweight suitings and other avenues. For a long period demand for it was very quiet, but it lias revived. South African exports of mohair from July to September this year were five times greater than during the corresponding months of 1934. A Healthier Demand. * Those aspects, while showing public resistance to higher prices for woollen goods also indicate the strong marketing situation of the sheep's staple. Apparently manufacturers do not anticipate that wool will cheapen, judging, by their continuous purchasing during the past four months.

The clip ' is certainly commanding a healthier demand this season than for some time. In the first half of list selling year, Yorkshire and Japan bought the )io]t/fi share of the wool sold. They have bought extensively this season, but have not dominated the market to the extent seen twelve, months ago. Italy has not bought to any marked degree, but the Continent generally, and more particularly French operators, have been influential purchasers. In addition to the buying of "bread and butter" types. France has competed keenly for the choicest, speciality spinning wools. Last season owners of those lines were concerned as to whether they could obtain over 20d for their choicest lots, owing to lack of normal demand for them, but due to the revival I of European orders the 30d mark has been exceeded this year. America has also become a helpful market factor. A number of years have i elapsed since United States orders have been so noticeable. Good Augury for New Year. The maintenance of demand to the close of the pre-Christmas sales augurs well for New Year markets. The risk has been avoided of an extreme rise in prices which would make consumers doubtful as to whether the rates could be sustained. Every rise in wool means an addition to retail selling figures, and unless w-ages rise in sympathy the public cannot keep their volume of purchases up. _ . A definite check to trade was administered by high prices in January, 1934. But wool would need to advance a further 41) per cent to reach that basis. Current values are, therefore, not excessive, and we look forward to at least their maintenance. Wool auctions open in Sydney -on January 6 and will be followed by I Hobart sales on -January 8,