THE WOOL MARKET.

Press, Volume LXIX, Issue 20790, 25 February 1933, Page 6

THE WOOL MARKET.

PRICE FLUCTUATIONS. MARKET INFLUENCES. In view of the suggestion .that the competition, at Thursday's .Chsistchurch wool sale was affected to uome oxtent by the political instability in at least one Continental market, the following report of;the Sydney brokers, Winchcombe, Carson, Ltd., is Interesting:— Small variations which occur' in wool values from time to time do not have' the decided effect on trading outlook which did in the days of highpr markets.. Eight years ago, when the average price secured on the Sydney market was 25$ d per lb, a 5 per cent, decline in rates meant an all-round reduction of ljd per lb. A similar market variation to-day represents under id. "With growers struggling hard to mnk® ends meet, the $d nowadays probably means as.much, if not mere, to them than the higher figure of more prosperous times. As a disturbing influence on trade through nervousness produced in buyers' minds, however, tjie variation quoted under present circumstances is a relatively minor factor. The export value of tie wool sold in Sydney froni July 1 to Depembar 31, 1924, was slightly above £4O a bale. Any fluctuation in rates involved severe losses in those times. To a smaller but important degree it also did so in 192829, when wool was worth over £2l a bale. That is one reason why it is now inadvisable to become too disturbed when prices vary slightly. The wool market has never for long proceeded without showing some alteration in the level of rates. Its ramifications are world-wide, and industrial, commercial, financial, and political events can all have effect on it. Under existing circumstances it also has the effects of oxchanges to combat. Improvement in thevaluo of the English £ has in the last month reduced the purchasing power, of (Continental money in Australia. 1 '■ Current circumstances are entirely different to those ruling at this time last yeas. The world was then in fear and trembling of the days ahead, while general opinion now favours the idea that better fortune is coming. In the wool trade, the Continent is now a forceful buying factor, with the mills in that quarter enjoying a better turnover than in the early part of 1932. Twelve months ago Prance, Germany, and Belgium were taking relatively small quantities of the staple. -With that improvement, combined with Japanese and Yorkshire orders, we do not fear a recurrence of the receding markets experienced during the second half of last season. . Demand for wool from Germany has been much greater this season than it was during the preceding 12 months. The year 1931-32 was a very poor period for the country's textile industry. Its greatest organisation, the North Germany Woollen Company, failed at the commencement of the season, and : the effects of that failure, combined with general conditions, curtailed turnover at tho mills. Since' July, when the reparations question was adjusted and that drain on German finances eeased,