PROSPECTS FOR WOOL

Press, Volume LXXXIII, Issue 25328, 30 October 1947, Page 3

PROSPECTS FOR WOOL

STRONG MARKET FOR CROSSBRED

VIEWS OF VISITING AUTHORITY Throughout the world the demand was running most strongly for fine wools—New Zealand crossoreds and Australian fine crossbreds and Merinos —said Mr F. S. Arthur, manager of United Kingdom-Dominion Wool Disposals. Limited, in an interview at Dunedin, his home city. Mr Arthur, who is on a month's visit to New Zealand, added that the world consumption of Merino wool to-day was approximately one-third above the production figure, which accounted for the strong fine wool market. Obviously, at to-day's levels, there must be uncertainty as to the future, particularly with Europe's unsettled financial and political state. A strong market for crossbred wools was indicated. With the high price level of fine wools, the substitution of coarser qualities at correspondingly lower prices was being urged. An important factor in price levels was the recent removal in the United Kingdom of maximum prices for tops. Consumption was slowly increasing in Germany, where textile plants were being used by British and other interests on a commission basis. Before the war Germany was one of the most important users of New Zealand wools.

There was evidence that Russia was ready to show increasing interest in New Zealand wools, although the extent and continuity of the demand was uncertain, Mr Arthur said. Arrangements had already been made through the Australian Wool Realisation Commission for the resumption of buying in Australia for Japan, and this, in time, would doubtless be extended to the New Zealand market. American Demand Consumption of wool in the United States during the war and since the war had reached almost 1.000.000.0001 b, compared with about 600.000.0001 b before the war, with a decline in production of domestic wool from about 450,000,0001 b to 4300.000.0001 b. Before the war the foreign wool imports had been about 500.000 bales, but on the indications of present consumption imports would now be about 2,000.000 bales. This increased demand from the United States had more than compensated for the loss of the Japanese and German markets, so that the continuance of the American demand for woo] at about the present basis was the most important factor in future wool prices. There was evidence, however, that the American manufacturers were re.luctant to follow the market, continued Mr Arthur. Apart from American influence on the market, wool was an international commodity, and the future of wool prices must be dependent on the restoration of normal trade throughout the world. At present, with so many financial difficulties in international trade, the future was uncertain.