OUTLOOK FOR WOOL

Press, Volume LXXIII, Issue 22108, 2 June 1937, Page 6

OUTLOOK FOR WOOL

STRONG HOME MARKET NEXT SEASON'S PRODUCTION Wool is strongly situated in Great Britain, and four months will elapse before any appreciable supplies arrive from the primary producing countries, states the latest review of Winchcombe, Carson, Ltd., Australian woolbrokcrs. In Bradford prices for tops have been maintained. 64's merino being quoted at 39d. That basis has been unchanged for the last five weeks. Meantime, values for local fellmongered wools in Australia have receded 1\ per cent. They arc chiefly dependent upon Continental buyers for their sale, and the market for tops in Europe has fluctuated. The offerings available for London sales this year are considerably smaller than 12 months ago. Less opportunity, therefore, exists to replenish stocks from that source. At the close of February the quantity of wool on hand at public warehouses in London and other ports and at depots in Yorkshire was 13 per cent, less than at the corresponding date a year before, and 29 per cent, below 1935. Those figures indicate why sellers of tops in Bradford have firmly held to the figures at which they are prepared to sell their product. June sales in Sydney and Brisbane will supply a definite guide to the trend of rates for the sheep's staple. The greasy wools which will be submitted will command attention from a much more extended range of buyers than the fellmongered wool now available. Japan, among other countries, is likely to be a purchaser. That country's imports of wool during the 13 months ended January 31 last were approximately 117,000 bales less than in the similar previous period. Increased purchases made in Soutli Africa, New Zealand, and South America did not fully compensate for the smaller quantities obtained in Australia. Active Japanese buying in the Commonwealth from January onwards has no doubt increased raw material slocks lo some degree, but further supplies are likely to be needed. A small increase in the quantities of merino wool available for consumption is probable during the coming season. South African flocks are recovering in number. Since 1934. the number of woolled sheep has increased 4,300,000. Production of South African wool during 1932-33 was in the vicinity of 1,000,000 bales, but was down to 680,000 bales in 1935-36, and is likely to be in the vicinity or 800,000 bales this season. Judging by experiences of this selling year, however, ample scope for the absorption of the wool exists.