WOOL TRADE.

Auckland Star, Volume LXIX, Issue 206, 1 September 1938, Page 8

WOOL TRADE.

POSITION IN AUSTRALIA. PERIOD OF SETBACKS. SIR T. BUCKIiAND'S REVIEW. Sir Thomas Buckland, chairman of Pitt, Son and Badgery, Limited, said at the annual meeting last week that of all the selling seasons through wtiich the company had passed, none had. .been more disappointing to its producing clients in results than that just concluded. Opening with conditions and prices which gave justifiable reason for expecting an excellent selling period, the market suffered setback after setback almost from the opening selling day. The position went from bad to worse, and for months prices steadily receded. Referring to the present outlook, Sir Thomas Buekland .said that from a seasonal point of view' it could not be more unfavourable, while the prospect for staple products, both in quantity, and prices, was not very assuring. That there would be a definite shortage in wool production in this State was beyond dispute , , and, in addition, the condition of the clip would be much below normal, which, in turn, would have an influence on values.

"In addition to lower commission revenue," Sir Thomas Buekland eaid, "the company has been faced with considerably increased storage expenditure, while the repeated handling of wool in our store, in consequence of many owners deciding at the last minute to withdraw their clips from any given sale, involved the company in heavy increases in labour charges. Moreover, an increase of 7/ per week in wages and correspondingly increased overtime had to be provided for. Ravages of Drought. "Graziers in almost every Eart of the country have been faced with seasonal conditions becoming steadily worse. In many parts where drought conditions are not often experienced, the grasshoppers completely ate out big areas of grass, and, as a. result, drought raged in places where graziers had expected to have quantities of dry foed at least. "During .Tune, good rains -fell in the north-west, but the growth of grass was disappointingly slow. In some parte drought conditions continued until recently. Store stock sales were hard to effect, and owners had to resort to the Flemington market to find an outlet. This market was consequently crowded with plain sheep and cattle. "Later rains enabled owners to hold their stock <so that the fat stock market has been lightly supplied, and higher prices have ruled. "In view of the present unsettled and threatening international situation, the tariffs erected against freedom of international trade, and the heavy and increasing taxation, largely for military purposes, one can scarcely be very optimistic. '"Japan, hitherto one of our most important customers for wool, ie now seriously engaged in a major war. and, with consequent financial restrictions, is not likely to buy as freely in the immediate future as in the past. Her operations during the past season fell far short of expectations. The new agreement between the Commonwealth and the Japanese Government will, it ie hoped, result in more competition in Australian markets.

"At the moment the United States of America does not appear likely to be an important competitor at next season's auctions, although the trade /arrangements to be entered into may considerably improve the position."

Sir Thomas Buekland said that the statistical position of the staple -was sound, but the increasing manufacture and uee of artificial fibres, which were reaching a high state of perfection, were eerious competitore, and wool values wonlnd be conditioned in some measure by the price of substitutes.