WOOL STOCKS ABROAD

Press, Volume LXXIV, Issue 22590, 21 December 1938, Page 16

WOOL STOCKS ABROAD

NEITHER LARGE NOR SMALL

Winchcombe, Carson, Ltd., in their latest report, state:— The present level of wool prices bases on a good foundation as far as the supply position is concerned, but there is no acute shortage in consuming centres. In Great Britain stocks of the raw material are moderate and in France and Belgium the holdings of tops are not excessive. A similar situation exists in Italy. Germany does not publish figures covering the quantities of wool and tops held. She has imported the sheep's staple in larger quantities, but as she has continued to buy freely, it is evident that the raw material is still needed.

If wool were in exceedingly short supply, its value would probably be much higher. Without that special impetus, there is nothing in the present world trading situation to lead to the expectation of decidedly advanced rates. Its price is to an extent dependent on the general level of world raw material values. Metals, wheat, cotton, and other products are all contributors to the world's purchasing power and there is no indication of prices for them rising to a marked degree. Though, therefore, the wool selling outlook is favourable at about present levels, a sharp improvement in rates does not appear likely in the immediate future.

America has been a fair competitor for- good length, medium quality merino fleece, free from vegetable fault. The prospects for larger purchases of woollen goods by the United States public in the months ahead are regarded as bright by leading American manufacturers. It is considered that huge government expenditure and a large amount of money being spent by the great corporations must have appreciable results on public spending. America is like most other countries, being neither overstocked nor understocked with wool. The quantity of apparel wool on hand at November 1 was 48,000,0001b more than a year before: but the excess total compared with 12 months previously has receded rapidly since August owing to the increased quantity used. Coarse wools are probably in the shortest supply in America. Usually bulky quantities of them are imported from China, the average for the three years 1935 to 1937 being 34,000,0001b. The war in the East has interrupted those imports. Actually America is a greater importer of coarse wools than finer wools. Her imports of the former are usually two to three times larger than the quantity of the latter. The clip of the United States is practically all of merino or the finer crossbred types.

There has been a decided increase this year in the number of cattle in New Zealand other than "dairy cows." In 1937 the number recorded was 2,453,597 and this year 2,633,285, an increase of 179,708 head. After allowing for the decrease in the number of dairy cattle this year the total cattle is the highest ever recorded—4,so6,oß2 as against 4,389,101 in 1937. These figures are to January of each year.

The area of Hawke's Bay ryegrass certified in that province for the season is 4500 acres, or 1100 acres more than in the previous year.