NOTES BY THE WAY

Press, Volume LXXVI, Issue 23086, 31 July 1940, Page 7

NOTES BY THE WAY

THE WOOL FUTURE A brief cablegram in "The Press” of Monday gives rise to some disquieting thoughts concerning the future of the wool market. The message stated that it appears increasingly improbable that wool prices will advance further, . that United States purchases of South American wool have only slightly increased American values, . . . and that the Argentine exports to May are 20 per cent, below those of the previous season. An Australian source reported a fortnight ago that American values had declined by 20 to 25 per cent. The hope was expressed that the American rearmament programme would strengthen values for the Argentine class of wool. Indications of this development have increased since the elimination of Continental countries from the raw material market. A different problem awaits the disposal of carry-over wool after this war from that which prevailed after the last struggle. The formation of “Bawra” then effected the orderly marketing of the huge accumulation, and at a handsome profit, but during the war a number of the Continental mills were able to keep their textile operations at full pressure, correspondingly reducing the annual quantity carried over. Holland, Denmark, Norway, Sweden could all receive their share of the raw material, or the equivalent in manufactured goods with only the one obstacle of shipping to overcome, whilst France and Italy were continuously supplied to keep a section of their mills operating during the struggle. To-day all these countries are excluded. It has been estimated that the countries mentioned normally imported 3,700,000 bales of wool each year. The only possible offset to the consumption of this impressive quantity is an increased use in America, and possibly in Russia and Japan, but the relations between Britain and Japan at the moment are not of a nature to depend to much extent on Japan as a long continued customer. There may be some belief that the importations of sheep by that country in recent years indicate a wool production industry of some importance, but more detailed knowledge suggests otherwise. More wool, according to the authorities, is being used in Canada and Australia for military purposes, but thishas little influence on the general position. The industrial life of the non-belligerent nations during and subsequent to the last war was exceedingly prosperous, but in this present conflict, besides the complete robbing of any stocks by the invader, and the necessarily long period required for industrial rehabilitation, their entry into the wool manufacturing market must be seriously checked. Another factor that has not to be overlooked is the growth of synthetic fibres since 1918. The inhabitants of the occupied countries will probably have little experience of any other kind of clothing material. NORTHERN EWE VALUES The sharp in ewe values has not been confined to the Addington market. At both the Stortford Lodge and Waipukurau sales last week similar improvements occurred, in some cases even more pronounced. A stock writer, describing some of these sales, stated that a “poor looking pen” of six-year ewes, with little to commend them, sold at 19s. The general value put on them was from 10s to 14s. Good five-year ewes made from 26s 2d to 27s 6d and good ewe hoggets 29s 4d and 29s 7d. Ewe hoggets were in brisk demand, and a line showing a Corriedale cross, and clipped as lambs, sold at 25s Bd. At a Pahiatua dispersal sale, good two-tooth ewes sold at 395. Another draft of 2000 at the same sale, including some four-tooths, and to lamb to Romney rams, sold at 365, six-tooths at 335, four-year at 30s, five-year (Southdown rams) 31s 2df mixed aged ewes, similarly mated, at 335, and ewe hoggets at 33s Id. The foregoing prices were substantially better than at the weekly stock sales, and the sheep were probably a few shillings better, but the general run of values was better than the top figures at the stock sales. BARLEY IMPORTATIONS It will amaze most farmers to learn that within the last two and a half years the Dominion has imported approximately; 1,400,000 bushels of barley, valued in the statistics at £184,000. The unsatisfactory feature is that there appears to be no sign of the imports declining—rather the reverse. For the whole of 1939, as an instance, the quantity imported was 258,902 centals, but for the five months of 1940 the quantity was 210,188 centals. It is well known that in the last two years this barley was bought at a very low rate, which growers in Canterbury would not find very profitable, but the shipping costs and freight are heavier, or rather should be, than between Lyttelton and the North Island ports. With this added to the cost of the produce, the saving in these Australian purchases may not have been substantial enough to warrant the outgoing of overseas credits that they represent. Australia has had two disastrous years in the' prices of cereals, but in 1938 the barley imported from there cost about 3s 8d a bushel. That is a figure that entitles the production to be encouraged in New Zealand. The Government was actually forced into the purchase of Australian barley this last 12 months or more, as the produce was not being raised and the price was too low to be resisted. A recurrence of these favourable circumstances should not be relied upon without some regard to possible crop failures in the Commonwealth. Such_ a happening, and consequent jump in price, whilst the local supply was shrinking on account of imported barley would leave our pig fattening industry in the lurch. STUD SHEEP FOR AUSTRALIA A further shipment of 150 rams left Lyttelton the other day consigned to Melbourne for Victorian buyers. The consignment comprised flock English Leicester rams from the flocks of G. B. H. Lill (Willowby), Gerard and Murray Aynsley (Bayfields), and E. Ridgen (Greendale), with six specially selected stud ram hoggets from Bayfields Estate. Border Leicester ram hoggets were included from the flocks of the estate of J. Stephenson (Flaxtbn), J. C. Bisdee (Clandeboye), J. C. Kelland (Orton), McKerchar Bros. (Ma Waro), McFarlane Bros. (Winchester), and J. J. Grotty (Geraldine). The consignment was purchased on orders received by the National Mortgage and Agency Co., of N.Z., Ltd., Christchurch.