WOOL TRADE.

Auckland Star, Volume LXVIII, Issue 3, 5 January 1937, Page 4

WOOL TRADE.

AUSTRALIAN SALES. JAPAN COMES IN STRONGLY. VALUES EISE 5 TO 10 PER CENT. ' SYDNEY, January 4. ' The Sydney wool sales resumed to-day, special interest attaching to the presence of Jnpanese buyers after a . protracted period of abstention duetto the trade dispute. Japanese competition to-day on suitable lines was a particular feature of the market, which was exceptionally buoyant. Best descriptions of fleece wool, compared with December rates, advanced 5 per cent, while average to good lines and all descriptions of skirtings were 10 to 15 per cent higher. Carbonising sorts advanced 5 per cent. Excellent competition came from Yorkshire and the tinentCreasy Merino sold to 30d per lb. The offerings totalled 12,839 bales, of which 12,420 were told. Also 1743 bales wer*j disposed of privately. KEEN MELBOURNE BIDDING. MELBOURNE, January 4. Japanese buyers re-entered the Melbourne wool sales to-day, whereupon values increased 7% to 10 per cent. The first Japanese bid was loudly applauued. Competing over a wide range of wools Japan secured a large proportion of average style -fleeces and skirtings. Although Japan's resumption was the principal cause of the increase, strong United States j competition also was a factor. ! The offerings totalled 8900 bales and all were sold except 100 bales. Hie higher vaiues represent au increase of £1 10/ a bale. STABLE WOOL PRICES. HOPE FOR NEW YEAR. i The English woollen manufacturing trade has this season experienced the busiest times for 10 years, reports Winchcombe, Carson, Ltd. At mid-November the number of hands unemployed in the West Riding, Yorkshire, was the smallest seen since 1926. In Bradford the number of combers employed was slightly less than a month before, but that development arose from a satisfactory cause from the wool selling standpoint. Supplies of Taw material for combing were not sufficient for requirements. Arrivals of wool have since rectified the position, but the occurrence is an indication of the strong statistical situation of the sheep's staple. Yorkshire was in the van in leading the world's manufacturing industry from the depression and its practically consistent activity has been one of the most important factors in preserving the confidence in prices this season. Millmen in Great Britain have good reason for their attitude. Trade has not only been gratifying, but millmen have been earning satisfactory profits and paying up preference dividend arrears, the distribution of which had been prevented by financial difficulties for some years. Manufacturers' Problems. Whilst Australia's concern is for woolgrowers to earn satisfactory profits, it is also desirable that manufacturers who buy the wool should also experience reasonable earnings. If they do so they are encouraged to buy further supplies of the staple, but if losses are made nervousness is born and wool prices suffer. The improvement in millmen's monetary results is largely due to the absence of marked downward variation in wool values since March, 1935. The best New Year wish which can be given is that prices should retain stability on about existing basis, escaping the undue risks attaching to "boom" figures and the depressing;, effect of receding rates. That experience will go a long way towards making a- happy, prosperous 12 months from. *11 concerned in the production of wool and its manufacture into fabrics. , i Higher wool Values have cauaed manufacturers who must definitely work to a price with their goods, to exercae their ingenuity.' In England fabrics have been turned out the warp of which is wool of flO/74'ft quality, but the weft whifch runs across'it is of AO's medium crossbred. Other combinations have also'been -mane. Their utilisation is partially responsible for the improvement in prices for? crossbreds which has been registered; It also has enaffled Merinos to retain-, their values, which they could not if trade was definitely checked owing to high costs. BRADFORD WITHDRAWS. ' ' '•V: (Received 1' p.m.)' LONDON, January 4. Bradford topmakers have completely withdrawn their Merino quotations. 'Private cables suggest that Australian sale prices are the cause. Sixtyfours cost 40-41 d. Business is at a standstill until the situation has been fully considered.