INCOME FROM WOOL.

Press, Volume LXVI, Issue 19941, 30 May 1930, Page 16

INCOME FROM WOOL.

OTAGO STATISTICS.

[XHB PBBBB Special Berviea.J

DUNEDIN, May 29

The decreased income that can bo expected.. from the growing of wool in Otago for the past season is reflected in the figures given below, which have been compiled by the secretary of the Danedin Woolbrokers' Association, lb will be seen that the decline in wool values has been very nearly, if not actually, 50 per cent. In comparing oroceeds for the season and ruling prices for this year and Preoedmg twelve months, certain factors such as the holding, over of wool and the placine of tooTiigb reserves on clips, must be taken into account, as these considerations have had an effect on the amount of wool recorded as having been offered and sold. It is difficult what quantity of wool has been held over in the provincial area of Utago. but it is well known that large quantities are being kept in store, while other clips have not yet left the wooished. The value of the *<*>! <f » the 1928-29 season was £1,843,593 /a lid, compared with £779,791 2s 9d in the 1929-30 season. Other comparisons are as follows: . ,_ „„ 1928-29. 1929-30. Awaae price per. lb 15.48 d 8.5 d (approx.)

Averse pric* P^ riß9d£lo . w (approx.) Wool offered «. 91,282 76,568 bales. bales. Passing,.. ... .3.855 .7 19S bales,, ' bales. The proceeds from each of the. four pricipaf eales of the year as compared with the returns of the year before also make, interesting reading. They are as follows: 1928-29. 1929-30. i £. s. d. £ ■ s. d Dee 480.419 6 8 245.249 12 8 Feb. 577,986 11 6 March 673.313 10 9 213.270 8 9 April 59,924 311 92,367 811 In the case of the April sale, of this year, the 'total proceeds exceed those of the, corresponding sale last year bv reason of the fact that this season 8678 bales were.offered compared with 3648 last year. . Arrangements have been made by the Wool Brokers' Association to hold a further wool sale in the first week of July, and possibly another in the following month or in September. As the pastoral year so far as wool statistics are concerned ends on June 80th, these sales will not affect the present season's averages, although they might have reduced some of the disparity between the proceeds and offerings that exist if they had been set down for earlier dates. WOOL RETURNS. THE OTAGO DBCUNB. J The decreased income that can be expected from, the growing of .wool in Otago for the past season is reflected in the figures given below, which have been compiled by the secretary of the Dnnedln Wool Brokers * Association (Mr A. W.;Moodie). It will be seen that tht deolJn» in wool : values has been very -nearly, if not,actually, 50 per cent. In comparing proceeds for the season and ruling prices for this year and .the preceding twelve months, certain factors, such as the holding, over of wool and the placing of too high reserves on clips, .must be taken into account, inasmuch as these considerations have had an effect on the amount of wool recorded '. as . having : been offered' and: sold. It ia difficult to say what. quantity of wool has been held over in > the area of 0 tago, bnt it i* well known that large quantities are being kept in store, while other clips have not yet left" the wool shed.' ■"

The comparison of the total proceeds from Danedin sales for the past two seasons is as follows:

1928-1929 .. £1,843,591 7 11 1939-1930 ... 779,791 3 9 Other comparisons are as follow: 1928-29. 1929-80. Average price per lb 15.48 d 8.6 d (approx.) Average price per bale £2l Is 9d £lO- 14s (approx.) Wool Offered .. 91,282 bis 76,663 bis Passings .. 8,855 bis 7,198 bis The proceeds from each of the four principal sales of the. year as compared with the returns of the year before also make interesting reading. They are as follows: 1923-29. 1929-30. £ a. d. £ s. d. December .. 480,419 6 8 245,249 12 8 February .. 677,986 11 . 6 211,408 11 1 March .. 878,318 10 9 213,270 8 9 April .. 59.924 8 11 92.367 8 11 In the case of the April sale of this year the total proceeds exceed those of the corresponding sale last year by reason of the . fact that this season 8678 bales were offered, compared with 3648 last year. BENEFITING BY EXCHANGE. EFFECT ON WOOL VALUES. The present exchange position of Australia and New Zealand on London has some bearing on the present improvement in the tone of the wool market. The subject has been gone into by Messrs Winchcomb*, Carson, Ltd., woolbrokers, Sydney, who snow that the millman abroad remitting funds for the purchase oi wool at present only requires to lodge approximately £94 at the London banks to secure a credit of £IOO in' Australia or £93 10s, plus cost of cabling. In the case of business in New Zealand, the amount required is £95 That situation actually means that the buyers can pay Jd per lb more for greasy wool on the market than would be possible were exchange rates normal. Fortunately demand for the staple is so keen that strong bidding results in growers securing ' that id produced by the current special financial circumstances. Australian funds are short in Lordon. To discourage calls being made beyond the resources of their London funds, the financial authorities must make an abnormal charge on those desiring to transfer money from Australia to the British Isles The situation is caused by the inescapable law of supply and demand. Money, 'ike wool or any other commodity, becomes relatively cheap when it ie plentiful, and dear when it is scarce. Wool is ■ now definitely selling at prides ' above prewar basis Actually well-gTowu wools of the.finer olasses have at all times realised figures above 1914 levels, but inferior wools were, some. time ago sellin? at rates below that basis Messrs Winchrombe, Carson. Ltd., report.' that recent Sydney catalogues have averaged' £l4 7s 5d per ba!e, or 11 Jd per lb. The average fo» the Ryrlne-r market it) 1311-12 was £ll 19a oer b*le, 1912-13 eifi 13s Id. and 1911-14 £lB fe sdt Th- Svdne« average foT this season to Apr-T 80th was Sl3 12s lid. Prosnec+s for a continuance of the more buovant tone Utterly experienced are favourable

DAIRY PRODUCE. The New Zealand Loan and Mercantile Vgencv Company. Ltd.: nave rcce'yod the fol'nwlne cable-ram from their London office ■«»*er date ?Bfh 'nst.:— B«t»er—New Z»al«nd. choicest salted. 126s *« I2Bi M»rV«» Is qn'et. Ohnp" -Wti'ti» 77s to 78s; coloured, 83b to Sis. Market It steady.