THE WOOL MARKET.

Bush Advocate, Volume XVI, Issue 582, 5 December 1904, Page 4

THE WOOL MARKET.

Thb buoyant state of the wool market, with the large increase of prioes that has taken place, has naturally created a great deal of attentio^, and considerable speculation as to the causes of the rise has been noticeable. For instance, Sir Staveley, manager of the Loan and Mercantile, at Christchurch, told a reporter that he considered lowness of stocks and increased demand generally inthe trade for coarser fabrios manufactured from crossbred wools, accentuated by army orders from Japan, and the British War Office, were the dominant factors responsible for the rise. He estimated the increased gain to Canterbury as compared with prices received last year would, at a moderate computation, amount to £200,000 sterling. There was every indication of the market keeping firm, but it was, of course, impossible to . predict how long the present prices would continue. Mr Martin, of the National ' Mortgage •and Agency Conipany, said the position was summed up by the Company's manager ill a letter written on October 14th, in which he said: — •' Althbugh the military requirements which haye.:been, keeping manufacturers .exceptionally •busy may be falling off, yet there are signs of the demands improving, notably the domestic trade, and we anticipate a large consumption of the ra,w material. Stocks, both at Home and oyersea- . yy'yiiyf-fi

are much: reduced, and -supplies denot promise to be abundant. The last Argentine clip turned out to be short of the preceding one by what is equal to 10,000 Australian bales, and the clip due will' not be larger. It is said much of the land there is sheep sick, and "therfe is much disease among the flocks, &h!d in the United States flocks have been much reduced of late years, and; Yankee manufacturers are forced to increase then: imports of raw material. On any grounds there seems reason to look for. -good prices during the coming season." As to the probability of this state of affairs continuing, Mr Martin pointed out that it was .impossible to" say definitely, but he took an optimistic, view. Owing tb the - : '■■ shortage. .of supply, and the- reduction of the Argentine and American clips, there was every probability of wool /remaining high in price fbr the n&k 12 months. A prominent wool broker said croasbreds were now about 30 per cent, higher in value than this time last year, and other wools about 15 per cent. Speaking, approximately, he considered the increases meant a rise in valne of a million or a million aud a quarter over last year for the whole colony. He. was doubtful as to present values 'being, maintained. Only twice within the past 10 years, he said, had the. present figures been touched, and in neither pase did the increase last long. Then, again, the demand had been an extraordinary one, and it. was questionable if it coald be maintained. : ; .