WORLD WOOL OUTLOOK

Press, Volume LXXXIV, Issue 25450, 23 March 1948, Page 8

WORLD WOOL OUTLOOK

RECENT SET-BACK “NOT SERIOUS ” The variation in wool values recently cannot be regarded as a serious set-back in values, says Winchcombe,. Carson, Ltd.’s latest report to reach New Zealand. The movement, it is stated, puts prices practically on the levels at closing January basis, and still well above the figure prevailing before Christmas No marked recession in business has been seen abroad and, while employment is plentiful and, consumers’ need for most manufactures is unsatisfied, a decided set-back in the raw materials necessary to make goods should not be considered likely. Wool is wanted. During February practically every buyer was well equipped with orders, but buying limits in a great number of cases were below the figures prevailing. The market was more or less dominated by a relatively few operators prepared to pay values in excess of those permitted by most overseas millmen. The New York futures top market receded about 5 per cent, at mid-February, but has somewhat recovered and has shown signs of steadiness Practically similar circumstances are evident on Continental markets. In Bradford early March quotations show no change. Immediate evidence does not indicate any marked nervousness abroad. Naturally, when values show a downward variation after a period of very high figures, some hesitancy in purchasing becomes evident. The European international situation does not help, but unless some sudden serious development occurs confidence in the sale Of the sheep’s staple at good figures should be seen.

Particularly well grown Merino wools and the finer crossbreds are in a sound position from the viewpoint of supplies. The shorter Merino carbonising types are not so well situated. At present the world favours worsted fabrics which require types suitable for combing, spinning, and weaving. The situation of the coarser crossbreds is not bright because the quantities of them available are quite adequate for the existing consumption of them. The stress on millmen almost everywhere is to’ increase output. In some countries want of sufficient labour and in others inadequate supplies of fuel and power prevent the attainment of desired production. But in no country are the quantities of fabrics made from the sheep’s staple in excess of the world’s requirements. On present indications the fluctuation in wool prices looks like a readjustment to a more moderate and workable range rather than a failing-off in trade in goods and loss of confidence causing the sheep’s staple decidedly to cheapen.

LONDON WOOL SALES MARKETS CLOSE STEADY (NZ. Press Association—Copyright) LONDON, March 21. From offerings totalling 14,814 bales at the London wool sales on Friday. 8625 were sold. New Zealand submitted 5523 and Australia 6877. The sales were the final for the series and they closed steady, with good Home and Continental competition. Throughout the series 83,800 bales were sold. The home trade bought 43,300* and the Continent 40,000. America was not In the market. The series closed with prices for best sorts 5 per cent, to 10 per cent, lower than the closing prices of the first series. Inferiors were from 10 to 25 per cent, lower. BANK ADVICES The Christchurch branch of the Bank of New Zealand has received the following cabled advice from its London office, under date March 20:—The sales have closed firm owing to increased competition from all branches of the trade, well supported by Russia. Rather a poor selection generally was offered. There was a limited offering of the new dip, good style, New Zealand greasy wool, which sold readily, particularly hoggets. Current quotations for wools of average condition:—halfbreds: 56/58's, 32d to 37d; 56’s, 29d to 33d; 50/56’s, 28d to 32d. Crossbreds: 50's, 22d to 25d; 48/50’s, 19Jd to 22|d; 46/48’s, 18Jd to 19Jd. BANK OF N.S.W. The Christchurch branch of the Bank of New South Wales advise having received the following cable message yesterday from its London office:—Wool sales closed with good competition for all descriptions from Home and Continental trades. Prices of New Zealand wools have improved Id to IJd per lb since the opening. Australian merinos are dearer and are now only 5 per cent, to 10 per cent, below the highest point in early February. Range of prices:—64’s, none offered; 56/58’s, 34d to 38d; 50/56’s, 28d to 33d; 46/50’s, 19Jd to 23d; 44/46’s, 19d to 20d.

COMPANY NEWS

FLETCHER HOLDINGS TERMS OF NEW ISSUE Details of the terms of Fletcher Holdings’ new issue of 250,000 ordinary shares of £l, which are being offered to existing shareholders at a premium of 7s 6d a share, have been given by the directors. The sum of 7s 6d a share, which will be' applied to the premium, is payable on application, 10s a share on allotment, and the balance in two calls of 5s each on July 7 and September 7, 1948. All shares will rank for dividend according to the amount paid* up from time to time exclusive of premium. Applications will be received for any number of shares, but until April 19 shareholders are entitled to one for three held. The issue of the shares will bring the company’s capital to £1,000,000. Before the increase the capital wa§ £750,000, divided into 50,000 preference shares of £1 each and 700,000 ordinary shares of £l. For the year ended April 30, 1947, the company made a net profit of £50,391, and paid dividends of 6 per cent, on both classes of shares.

PRUDENTIAL BUILDING SOCIETY Tlie annual report of the Prudential Building and Investment Society of Canterbury records a net profit of £163 for rhe year ended December 31, 1947—£176 for the previous year—after the payment of a dividend of 51 per cent, (unchanged). The working profit for the year was £2025. The A shares now issued total £34,627 (£33,437). Deposits amount to £33,882, mortgage reserve £l5OO, and general reserve £5899 (£5736). On the assets side, loans on mortgage total £55,608, deposits £5579, Hereford street property £7252, and National Bank £7072. The balancing t0ta1—£75,914. The working profit for the year was £2025. Austral New Zealand Profits.—Austral New Zealand Mining, Ltd. (Cromwell), earned a profit of £3856 for the year ended September 27, compared with £36,650 in 1945-46 and £915 for 1944-45. The fall in profit was due largely to delays while repairs were being carried out after a plant breakdown and to an increase in- costs from 4.37 d to 5.35 d a cubic yard, resulting chiefly from reduced yardage. With £26,499 brought forward, £30,355 is available. First depreciation of £20,000 is written off, leaving £10,355 to carry forward. Indebtedness was reduced by £lB,OOO to £59,246. The directors report that the dredge had worked well since the closing of the accounts, improving the financial position. STOCK SALES TINWALD There was a good yarding of both ewes and wethers in the fat sheep section of a double market held at the Tinwald saleyards yesterday. Prices were firm at late rates. An open ewe fair was also held. Ewes realised up to 21s for light weights, from 22s to 24s for medium quality, from 25s 6d to 37s lOd for prime quality. Five were sold at the top price on account J. Cocks (Eiffelton). Wethers realised up to 37s for light weights, from 38s to 41s for medium quality, and from 42s to 46s lOd for prime quality- On account J. McQuilkin six were sold at 46s lOd. MINING Clutha River Dredge.—The return for the week ended March 19 is: working hours, 128; yield, 208 ounces of gold. Associated Gold Dredges.—For the week ended March 20, this company’s dredges recovered 511 ounces of gold from 50,882 yards in 2313 dredging hours.