BETTER OUTLOOK.

Auckland Star, Volume LXIX, Issue 192, 16 August 1938, Page 6

BETTER OUTLOOK.

NEW WOOL SEASON.

BUYERS WILL BS CAUTIOUS.

The usually quiet period «f Amt m M the wool trade has beem supplied with. - i cause for confident tone recently evident in trading circlet, ; report Messrs. Winchcopbe, Ganoa, Ltd. — Xβ Appreciable advance in values kae-been r-'r 5 recorded, bat in contrast 4», aon»?tiaae ago, when consumers had the price-wdtae-. / Son complex, they now bold idems that / y the future may produce bricfater maifcrta. r^ America's operations at.recent London '.■ sales show that the raw material is aot -•''- without interest to millmen in that cotm- >s3 try. At late June, etate thit tUUnited States markets were brighter and ; r the piece goode demand had also shown seme improvement. In viewing , the future, however, the fact must be kept in snmd m that receding values during the past yew i have resulted in heavy losses for those who booght the sheep's staple. XJndej ■ those' circumstances, consumers will need to feel -very eure of the outlook before they hastily commit themselves to parchase very extensively. That aspect applies particularly to growers who, through the misfortune of drought, will produce a faulty, dusty dip unusually short in staple.' Those types will be plentiful _ in Australia, and the number of millmen who buy them is limited. Well-grown wools will have the factor of reduced supplies to influence prices in their favour. Artificial Fibres. "We do not wish to ignore the presence of artificial fibres in the textile world, but we do consider that their influence on prices has been exaggerated during recent months. Up to the present a fibre of toe standard of the sheep s staple has not been produced. Substitutes have been used freely for blending, but by cheapening goods they have to an appreciable extent offered an encouragement to tlfc use 01 wool. Substitute fibres wereTio more responsible for the falling off in demand for wool during the past twelve months than growers are responsible for heavy stock losses in times o£ drought, wool became cheaper because world trade declined. Producens of rayon and staple fibre experienced reduced earnings m common with manufacturers of woollen textiles and sheepownere, and Germany end Italy who have developed the production of "artificial fibres to a marked extent, actually used more wool in the past twelve months than during the preceding year. If ae is generally hoped, world business revives, artificial fibres will not prevent wool from being purchased keenly at higher rates than now prevail.