OPEN MARKET FOR WOOL

Press, Volume LXXXVII, Issue 26511, 28 August 1951, Page 11

OPEN MARKET FOR WOOL

COMMENT ON DOMINIONS’ DECISION BRITISH IMPORTERS • “ GRATEFUL ” (New Zealand Press Association) LONDON, August 27. Mr Menzle’s announcement that the Commonwealth will not be a party to allocations or maximum prices for wool, and Mr Holland’s statement that this Is in line with New Zealand’s attitude, have done much to clear the air for wool importers who are making plans for the Australian wool selling season, opening to-day, states the International Wool Secretariat special news service. Aa long as uncertainty existed about the future of wool marketing practice, it was almost impossible to assess the outlook, but the Australian statement, in particular, is regarded as guaranteeing the continuity of wool auctions, and British importers are grateful for the statement, which ends the recent indecision. The Bradford market is brighter, and importers are discussing with greater freedom the limits they can send out for the opening sales in Australia this week and South Africa next week. Stocks of wool in Britain are low, but Merino stocks in particular are less than half those of a year earlier. After allowing for the liquidation of the balance of Joint Organisation wool in the last 12 months, the latest figures reveal a substantial reduction in trade holdings. This reflects the cautious importing policy followed by the United Kingdom firms at very high prices earlier this year, but it also foreshadows a need to buy substantially as soon as firms feel confidence in prices. After the big drop in the world wool price level since last March, traders feel that a full restoration of confidence in wool may take some time to establish, but it seems probable that new season’s wool will open more promisingly than seemed lately possible. Bradford Tops The Bradford tops market is quiet, while traders await Australia’s wool price lead. Approximate tops quotations are:— 70’s, “A," 206 d per lb; 64’s. "A,” 175 d, and ’ B,” 170 d; 60’s, super, 160 d; 58’s t super, 140 d; 56's, super, 120 d; 50’s, 85d; 4fe’s, 80d; 46’s, 76d.