THE WOOL MARKET.

Press, Volume LXIX, Issue 20905, 12 July 1933, Page 14

THE WOOL MARKET.

"THE TIDE TURNED."

'AS AUTHORITATIVE OPINION, ''The tide has turned, but it is running a little rapidly for nervous folk," comments the wool firm of Henry Dawson, Sons and Company, Bradford, on the close of the London May scries of sales. "The real benefit accruing from the series is that a new virility and a new confidence have stirred most sections of the trade." continues the firm's circular. "Large turnover has resulted, and old stocks are disappearing with the principal supply markets practically terminated for this season. Will Improvement Hold? "The price levels for fine grades have advanced with startling rapidity, and have naturally caused anxiety as to their permanence in the consuming centres where the appreciation has not yet elicited an adequate response. The improvement was due, and its salutary effect at the manufacturing end will be welcomed equally with the satisfaction it must give to the growers. "The only query is whether it can be maintained without reaction.

"The most cogent facts that can be summarised are fairly hopeful. There is a wide and expansive demand behind this improvement. All European centres are giving active support, and in Australia and New Zealand Japan continues to be a strong factor. The deliveries of this season's record clip have been ahead of previous years, but have been absorbed in equally rapid proportion. The offerings in merinos promise to be somewhat limited until the new season's clip is available. If the return of con- 1 iidence as regards values reaches the cloth merchanting and retailing end it will contribute the strongest factor towards stability. The Stock Position. '" On this point it is generally believed that the stocks of goods in distributors' hands have been kept at a minimum level during recent years awaiting the return of confidence. Meanwhile, cheap prices have encouraged demand, in spite of the ; lack of spending power among the artisan classes. The gradual reduction of unemployment figures at Home and abroad should also be a strengthening factor. " Taking a wide view, the conditions within the industry, excepting perhaps the finest worsted goods trade, are generally healthy. The principal danger to stability is still found in the uncertain political and international outlook." Favourable Outlook. "Winchcombe, Carson, and Co., Sydney, report:—" Abroad the outlook for the staple continues favourable. Prices for tops and yarns have been advanced, but demand for them has not fallen off owing to higher costs. Of late the value of cotton has not risen to the same degree as the price of ■wool. No doubt the decrease in supplies of the latter likely to be available during the coming year has specially accentuated the upward movement in its value. "The rapid absorption of large wool supplies during the last year is remarkable because the various manufacturing countries except Japan have not shown any increase in exports of textiles. They are all, however, •working under the protection of import duties. Evidently the use of woollen goods within their ov/n borders has expanded. Italy is one case in point in that respect. Her foreign •sales of fabrics have declined, but her internal consumption of them has increased. She has required more ■wool to meet her needs. During the eleven months ending May she took 205,807 bales from Australia, compared with 184,536 , bales during the similar period of 1931-32. All the larger Continental countries show expansion. "Wool has been cheap, and the reduced prices at which the goods made from it have been sold have stimulated sales. No person is in a position to definitely state how much of the recent sharp rise in prices has been due to the effects of American inflation, but the eagerness with which the staple has been latterly bought must promote confidence in the market."