WOOL TRADE.

Auckland Star, Volume LXVII, Issue 194, 17 August 1936, Page 4

WOOL TRADE.

PROSPECTS FOR NEW CLIP. WORLD :n~eeds supplies. The outlook for marketing the new season's clip from Australia and Xew Zealand is quite favourable. Reviewing the general position as at August 4 Messrs. Winchcombe, Carson, Limited, state: — Business in the United States is not as brisk as earlier this year, but trade has been moderately active. Until the Presidential elections in November commerce may not show a spurt, but owing to an unfavourable season, domestic supplies of wool are not likely to increase and may decrease. A demand for good length spinners' wools is probable from that quarter. Prospects for English purchasing are favourable. Both on internal and export trade the Yorkshire mill's have been well employed. The outlook on the Continent is 110 worse, and in some respects slightly more favourable for wool selling than in 1935. Strikes for a time halted French industry, but wages have since risen. Provided unemployment does not increase as a result, purchasing power among France's population should be greater. Germany unquestionably wants wool. Of late months she has bought more freely, but her stocks arc at low levels. With the removal of sanctions, Italy is certainly likely to play a greater part in the purchase of the world's 1936-37 clip than was the case with its predecessor. Already Italian buying has been a helpful market factor. In Belgium, mill activity lias been slightly easier, but the absence of stocks of wool elsewhere should prove helpful to the Belgian carbonising and scouring industry in selling its clean wool product. Japan may not buy as extensively in Australia, but she will play an important part in "lifting the world's supply. She had adequate stocks, but she did not "buy in June, and in the absence of sales until the new season cannot replenish her holdings. She is, therefore, likely to need raw material. That position applies to most countries. Since April-May relatively small supplies have been available for purchase everywhere. Years have elapsed since such an extended off woolselling period has been experienced. That circumstance should prove a source of market strength.