LONDON WOOL SALES

Press, Volume LXXIV, Issue 22400, 13 May 1938, Page 13

LONDON WOOL SALES

BROADER DEMAND EVIDENT HOME CONSUMPTION LOWER (tmtZD PSXBB ASSOCIATION—COTTIIIGnT.) LONDON, May 11. At the wool sales 9427 bales were offered, Including 3979 from New Zealand; and 8192 were sold. A good selection met a broadening demand, especially for Australian merinos, at firmer rates. Withdrawals were frequent among inferior wools. New Zealand lots sold as follows: Scoured halfbred, Taruarau 14Jd to 174 d.

H. Dawson and Sons, commenting on ths wool outlook, say that consumption by the Home trade has considerably declined in volume. New business available for woollen mills is very limited. Manufacturers generally are not heavily stocked with raw material, but, unfortunately, are heavily stocked with cloth. Merchants and distributors have considerable quantities on their shelves. Merinos at present are reasonably priced and no further depreciation is feared.

BRIGHTER YORKSHIRE TRADE RESTOCKING PROCEEDING Trade in Yorkshire has of late been brighter in tone than for a considerable period, states the latest report of Winchcombe, Carson, Ltd, A restocking movement has been proceeding which has resulted in improved wool consumption at the mills. Due to that cause, good Continental buying and continued Japanese purchasing and the certain reduction in the coming Australian clip, the raw material has found keener buyers. At mid-March about 2000 . more hands were employed in the Yorkshire combing and spinning industry than at the similar date a month before. Increased purchases of yarns by Germany were a contributing factor. Buying of sorted wool by Russia also assisted in giving the trade a brighter outlook.

The statistical position of wool in the United Kingdom looks sound. British imports in 1937 were 85,000,000 lb less than In 1936 and the quantity imported in January and February of this year was 21,500,0001b below the similar months of 1937. The quantity of wool in store at the Yorkshire railway and canal depots at the end of February was 23,000,0001b less than a year previously. Those stocks are accepted as an indication of the supplies manufacturers have on hand. On present information, a decided recovery in Yorkshire mill activity does not look probable. Demand for fabrics on export, account has shown reduction this year; but as far as internal business is concerned, retail traders are likely to experience a good turnover as employment is plentiful in many industries. That position should assist to keep the English situation healthy from the wool-selling standpoint.

A marked recovery in wool values and commodity prices generally depends upon developments In the United States. Whilst the American G-vernment is endeavouring to stimulate industry the outlook in that quarter remains hazy. Stocks of raw material have accumulated and consumption at '.he mills has decreased. The amount of wool used in January was the smallest recorded since September, 1934. Things never appear to be “done by halves” in the States. They boom or the reverse and those movements are a potent influence on demand for the world’s raw materials. Those looking for a marked rise in wool prices need to keep their eyes on the American situation.

Though Japanese purchases of wool in Australia this season have not been up to expectations, export figures show that the lion’s share of her buying hns been effected in the Commonwealth. Shipments from South Africa, New Zealand, and South America have been very small compared with a year previously. Her continued activity at Australian sales has helped materially in sustaining consumers’ confidence in prices. At rates about on current basis, wool appears likely to continue sellin;' in good volume. Some authorities abroad are not particularly hopeful because trade has not brightened to a greater degree. But on previous occasions the Inspiration In business to a great extent arises at the raw material end. Sales will be held In Brisbane during the next two weeks. The Sydney market reopens on May 23.

DECREASE ON LAST YEAR BRITISH WHOLESALE PRICE LEVEL LONDON, May 11. The Board of Trade index of wholesale pricfes shows that the general level In April averaged 1 per cent, lower than in March, and 54 per cent, lower than a year ago. ARGENTINE WHEAT CROP HEAVY DECREASE ON LAST YEAR BUENOS AIRES, May'll. The final official estimate of the wheat crop Is 184,000,000 bushels, a decrease of 25.8 per cent, on last year.