NEW ZEALAND HEMP.

Auckland Star, Volume LXVII, Issue 172, 22 July 1936, Page 4

NEW ZEALAND HEMP.

COMPETITION OF SISAL,

Wigglesworth ;tnd Co., fibre brokers, London, June 1, report that the New Zealand hemp and tow industry is passing through a period of adjustment. "Owing to the rising production costs and the proposed reduction of Government subsidy to £2 per ton, it is difficult to make progress. The few offers received are too high to be attractive to European spinners, and Australian and home consumers take the major portion of the supplies. Quotations are nominally: — Good fair, £23 per ton; high point fair, £21 10/; fair, £19; common, £18 10/; No 2 tow, £14; No. 3 tow, £12 10/. All June-July shipment, e.i.f. London basis." The firm also reported East African sisal in a strong position. The news that the Mexican control had advanced the price by % cent brought to view the strong position. "The result was an immediate demand for African sisal which was difficult to satisfy on account of the smallness of supplies and the fact that most of the estates are already heavily sold ahead. Prices appreciated sharplv and within a. few days had risen about 10 per cent. The demand was not confincd to the near positions, and many spinners decided to purchase forward shipments on a considerable scale, extending well into 1937.

"It is generally agreed that the binder twine output during 1936 is going to prove a record for many years, and it is safe to conjecture that consumption will be on a substantially-increased scalc. A number of unforeseen circumstances (such as excessive rains, labour shortage, etc.) have interfered with the production in Tanganyika and it is feared that the exports, which are already, over 2000 tons belowlast year's over a four months period, may continue to show a substantial falling-off. During the last few days the pace has slowed down."